Blockchain for Public Finance
With EY OpsChain Public Finance Manager, governments can spend money more effectively and efficiently. The solution helps public finance managers overcome long-standing barriers, such as lack of timely and accurate reporting of value for money.
Your business challenge
Those responsible for managing public finances have faced long-standing barriers that constrain decision-making and hamper financial management. These include:
- Lack of timely and accurate reporting of outputs and outcomes for effective allocation
- Prioritization challenges due to lack of robust reporting and costly administrative structures
- Significant overhead costs of reconciling and exchanging transactional and reporting information
- Disconnect between public reporting of program performance and management of program performance
- Incomplete view of financial and nonfinancial information, and of funds allocated against program outcomes
- Inability to jointly view and reconcile appropriation and management frameworks in near to real time
EY OpsChain Public Finance Manager helps to remove these barriers by;
- Integrating financial and nonfinancial reporting in government
- Reconciling and consolidating information within and across government and external agencies
- Producing near-real-time performance reporting and advanced analytics
This enables a government to see exactly where money is being spent and what is being achieved.
Solution features & functionality
EY OpsChain Public Finance Manager gathers and processes data from multiple systems and provides a range of visually enhanced reports to track performance. The solution:
- Makes it easier to onboard new organizations, programs and users, with appropriate security and privacy
- Synchronizes with existing enterprise resource planning and financial management systems to record financial and nonfinancial transactions as they happen
- Swiftly drills down to granular details of purchase orders, invoices paid, receipts and other documents, with visualization, aiding decision-making and easing the audit process
- Uses advanced analytics to assess efficiency of spend, allocation of funds, and performance of programs and entities – including budget to actual comparisons, performance metrics, reliable financial forecasts and total cost of ownership of assets
- Features a mobile app for suppliers, contractors and grant recipients that lets them easily interact with the solution, submit invoices, check payments and check that services have been delivered
The solution marries the vast public finance management experience of EY teams across the world with our vision, expertise and investment in public blockchains and blockchain regulatory convergence.
Blockchain complements current systems and integrates well with ERPs and underlying Internet of Things hardware. It is non-invasive and data can be exchanged with current and legacy systems via an application programming interface.
Microsoft is working with us to provide enterprise-grade blockchain solution support.
Yes. For example, you can also track funds all the way into procurement and capital projects.
Blockchain uses secure encryption and, with additional security layers applied to it, sensitive data can be read only by relevant parties.
What must be in place to confirm that the blockchain is tamper-proof? Blockchain is tamper-evident, so if fraudulent transactions and tampering were to occur, the blockchain is very efficient at flagging it immediately without having to corrupt the existing data. Those transactions simply get rejected. However, a good governance model is required to support effective onboarding of new participants, and to understand how different role-based access will work in a private network, and what controls are placed on data that is being written into the blockchain.
Yes. Blockchain can provide machine-learning models with near-real-time data that not only makes them accurate, but also relevant for decision-making.
Yes. Blockchain can tokenize funds and track movement of funds in near-real time to all parties involved – such as employers and service providers – and automate and simplify contract management and end-to-end pension intake and payout process.
EY teams leverage Microsoft Azure and associated cloud technologies and services to build and deploy the solution.
Our lastest thinking
Like what you’ve seen? Contact us to find out more.