2017-智慧城市，走进未来_52页-2mb

Summary of "Smarter cities, simpler cities: Accounting for the city of the future"

Core Content

This report explores the role of professional accountants in supporting the development of smart cities, with a particular focus on the Smart Cities Mission in India. It outlines the global context of urbanisation and the increasing need for efficient and effective city management, and highlights how the accountancy profession can contribute to this transformation.

A smart city is not a final destination, but rather a continuous journey of improvement that requires a rounded approach to managing resources, delivering technology-based solutions, and achieving long-term outcomes. Accountants are essential in this process, not only as record-keepers but as influencers who can shape future performance through strategic financial management.

Main Viewpoints

• Smart Cities as a Global Trend:
  Urbanisation is a long-term global trend, with more people expected to live in cities than ever before. Asia and Africa are expected to see the largest increases in urban populations, with India projected to add over 300 million urban dwellers by 2045.

• Role of Professional Accountants:
  Professional accountants are key players in the smart city movement. They are not just record-keepers but also stakeholders who can influence future outcomes through effective budgeting, planning, and forecasting. Their skills in managing resources and ensuring accountability are vital to the success of smart city initiatives.

• India's Smart Cities Mission:
  The Smart Cities Mission in India is a large-scale, multi-year programme aimed at transforming urban areas through the use of technology and efficient management. It involves multiple layers of government and requires significant financial management capabilities at the municipal level.

• Municipal Accounting in India:
  Municipal accounting has evolved over the past 30 years, with the development of national-level frameworks such as the 'Guidelines for the Utilization of Local Bodies' Grants (2001) and the 'Model Municipal Law' (2003). However, challenges persist in implementation, including legal and operational complexities.

Key Information

Current Status of Smart Cities in India

• Smart Cities Challenge: A competition among 100 selected cities that ranks them based on their proposals. The top 20 cities have started receiving funding in the first round.
• SPVs (Special Purpose Vehicles): These are legal entities established to manage smart city projects, ensuring a professional and outcome-focused approach.
• Interviews Conducted: Stakeholders from 40 cities were interviewed to assess the readiness and challenges of municipal accounting in the context of smart city development.

Perceived Readiness

• Accountancy Staff: 35% were optimistic, 38% cautious, and 28% pessimistic about the success of smart city plans.
• Operational Staff: Most believed improvements were needed in the accountancy teams' preparation for supporting smart city delivery.
• Training Needs:
  • Budgeting, planning, and forecasting were cited as requiring training by 98% of accountants.
  • Cost and expenditure management was the second most commonly cited area.
  • Revenue generation was ranked as the top priority for training by 30% of respondents.

Challenges Identified

• Staffing Shortages: In half the surveyed cities, between 61% and 70% of permanent accounting positions were vacant.
• Dependence on Contract Staff: In 60% of cities, more than half of accounting employees were not permanent. This raises concerns about knowledge retention and skill development.
• Legal and Operational Issues:
  • Legal Framework: Complexity in clearances, documentation for PPP contracts, and retrospective changes to laws are perceived as significant legal challenges.
  • Operational Concerns: Tight deadlines, political intervention, and coordination between different levels of government and departments are key operational dependencies.

Key Dependencies for Implementation

• Funding and Talent: Almost half of all respondents identified the need for fundraising and availability of skilled talent.
• Legal Framework: The legal environment, including clearances and documentation, is a major dependency.
• Project Management: Concerns around tight deadlines, political interference, and inter-agency coordination are significant barriers to successful implementation.

Future Requirements

• Multi-Year Budgeting: This is emerging as a new responsibility for many municipal accountants, as the Smart Cities Mission shifts from annual funding to long-term planning.
• PPPs and Project Management: Accountants are expected to develop expertise in public-private partnerships and project management approaches, including activity chart models.

Conclusion

The report underscores the critical role of professional accountants in the development of smart cities, especially in India. It highlights the need for enhanced skills in budgeting, planning, forecasting, and revenue generation, as well as the importance of addressing staffing and legal challenges to ensure the successful delivery of smart city projects. ACCA and ICAI are collaborating to build the capacity of the accountancy profession to support this initiative, which is essential for achieving sustainable urban development.