Digital PFM - Digital PFM

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Website is dedicated to empowering PFM professionals with the necessary resources needed for effective Digital PFM. Website lists resources, technical notes, best practices, blogs, and news to enhance transparency, efficiency, and accountability in public finance using digital technologies. Whether you're a policymaker, practitioner, or researcher, website supports your journey toward smarter PFM.

About Digital PFM

PFM is being transformed by digital technologies, including AI, Machine Learning, and blockchain. AI, particularly in cognitive automation, plays a vital role in automating complex PFM tasks that require human-like decision-making, such as budget forecasting, anomaly detection, and compliance checks. AI/ML enhances decision-making and predictive analytics, while blockchain ensures transparency and security in transactions. Data analytics provides real-time insights, optimizing resource allocation.

Data governance remains crucial for AI, ensuring accuracy, consistency, and security across systems, which builds trust and compliance. Key components of digital PFM include digital budgeting, e-procurement, automated financial reporting, and Integrated Financial Management Information Systems (IFMIS). Additionally, Public Investment Management Information Systems (PIMIS), payroll, and other PFM IT systems enhance efficiency and accountability, creating a transparent and effective PFM ecosystem for governments.

USA: Treasury Announces Enhanced Fraud Detection Process Using AI

The U.S. Department of the Treasury announced it has recovered over $375 million through an enhanced fraud detection process using AI, implemented at the start of Fiscal Year 2023. This initiative addresses a 385% increase in check fraud since the pandemic. The Office of Payment Integrity (OPI) within the Bureau of the Fiscal Service has utilized AI to detect and recover fraudulent payments in near real-time. Deputy Secretary Wally Adeyemo emphasized the commitment to protecting taxpayer dollars and enhancing fraud detection. The rise in Suspicious Activity Reports (SARs) related to check fraud, which doubled from 2021 to 2022, underscores the importance of this initiative. The AI process, in collaboration with federal law enforcement, has led to multiple active cases and arrests.

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