In most jurisdictions, the management of public finances is a major issue and trillions of cash end up lost through misappropriation, theft, or poor record-keeping. The effect is that public projects stall and people are left with subpar public infrastructure which lowers the quality of living.
One of the often sidestepped solutions to accountability at government levels that have often been overlooked by Blockchain developers. Nonetheless, this may be a thing of the past as EY is facilitating the adoption of Blockchain technology to help governments overhaul financial management practices.
EY OpsChain Public Finance Manager
By launching a platform codenamed EY OpsChain Public Finance Manager, Ernst & Young is offering solutions for tracking funds. The features of the Blockchain platform is that there is a harmonized dashboard that transparently details all transactions.
Since DLT technology offers immutable solutions, the date on the ledgers is set to by trusted and verifiable a component that is missing in conventional financial systems in use around the world today.
Built On OpsChain
The newly established EY OpsChain Public Finance Manager is built on OpsChain, EY’s native Blockchain ecosystem.
This customized Blockchain platform enables auditors and public funds managers to monitor the use of public funds in real-time. Hence, the information on the ledgers is poised to be accurate, timely, and vital in government operationalization.
The EY OpsChain Public Finance Manager has already been piloted through extensive trials in key areas such as Toronto, Canada. A key strength confirmed during the pilot is that the new Blockchain platform can be a game-changer in the reconciliation of public funds as well as management of inter-divisional fund transfers.
What To Expect
At this point, EY OpsChain Public Finance Manager is targeting to transform how public funds are managed. However, there is much more that needs to be done to have a meaningful impact on the processes of public financing.
Firstly, economic activities have to be formalized and this can be done through regulation. Secondly, tax authorities like the IRS have to use state of the art technology to manage tax collections and seal loopholes of tax evasion. Lastly, governments have to rethink how to manage revenues and this is what the EY OpsChain Public Finance Manager addresses.
Nevertheless, the EY project is likely to introduce Blockchain technology in government circles and this will lead to increased adoption and most important people-focused governance.
Ernst & Young (EY), Deloitte, KPMG, and PricewaterhouseCoopers (PwC) are the big four accounting firms not only in the country but globally. They have been at the forefront of proving audit and advisor solutions for governments and their contribution to development cannot be overstated.