XBRL in Government XBRL Finland June 2005 Paul

XBRL in Government XBRL Finland June 2005 Paul Snijders CEO Semansys Technologies Member of the Board XBRL in Europe Board member XBRL NL Vice Chair Solutions Working Group October 14, 2004 XBRL in Europe XBRL IR © Semansys Technologies 1

Agenda 1. 2. 3. 4. 5. October 14, 2004 Background Project featuring: Solution New working environment Lessons learned XBRL IR © Semansys Technologies 2

How do you start • • October 14, 2004 You know the it is a professional standard You see the benefits for preparers And can deliver cost savings for regulators But: You are the only one who knows There is no track record The standard is still under development XBRL IR © Semansys Technologies 3

A typical XBRL Case • • • A small group of preparers (Water Boards) All participants in reporting chain involved Benefits for preparers and regulators A showcase implementation of XBRL Standard XBRL software utilized Honored to speak on behalf of: The Customer October 14, 2004 The Regulator The Supplier XBRL IR © Semansys Technologies 4

The background • • • October 14, 2004 Financial situation of local government not transparent with hidden capital and unclear financial position. Politicians in Europe demand more control over monetary policy. No clear European wide reporting standard in use. EMU reporting (European Monetary Union) to: European Commission, European Central Bank New reporting requirement: • More detail, More frequent • Faster – within 30 days XBRL IR © Semansys Technologies 5

Water Boards Semi government, Euro 2. 5 Billion Budget Water management, dyke control, water quality 50 of 900 local government orgs in Holland External accounting rules (EMU) 30 days to report 6 months to implement GL October 14, 2004 GL XBRL IR © Semansys Technologies 6

Joint effort Preparers and supplier compose the solution for the complete reporting chain ‘Sales’ package to regulator Realized High level support Software vendors adopt XBRL All local government organizations MUST report in XBRL as from 2004. Ministry of the Internal Regulator Preparers Integrated Semansys OEM solution Software vendors October 14, 2004 XBRL IR © Semansys Technologies 7

Project scope Minimal burden for preparers Foundation for 49 other reporting tasks Low cost, easy deployment Showcase for 900 other organizations Blueprint for other closed loop reporting duties October 14, 2004 XBRL IR © Semansys Technologies 8

Project design Supervision Association of Water Boards Management Semansys Regulator CBS Taxonomy Development Communication Receiving processing Customization Semansys Integration SW vendors Implementation Training Semansys October 14, 2004 Report Waterboars XBRL IR © Semansys Technologies 9

Solution requirements Low threshold: financially, functional and architectural For incidental use Flexible to additional reporting duties Supplementary to existing applications October 14, 2004 XBRL IR © Semansys Technologies 10

Solution outline Taxonomy Legislation GAAP SAP Agresso IBS Reception XBRL Validation Compliance Supervision Regulators Gov’ Coda October 14, 2004 XBRL IR © Semansys Technologies 11

New preparer environment Walk-up user interface 1 day training on background, not application Potentially 1 button operation Operation steps introduced on request October 14, 2004 XBRL IR © Semansys Technologies 12

New preparer environment October 14, 2004 XBRL IR © Semansys Technologies 13

New preparer environment October 14, 2004 XBRL IR © Semansys Technologies 14

New preparer environment October 14, 2004 XBRL IR © Semansys Technologies 15

New preparer environment October 14, 2004 XBRL IR © Semansys Technologies 16

Lessons learned - results Achievements: - Highly feasible - Keep it simple - Do not ‘hype’ XBRL But: - KISS - Align stakeholders - Concept XBRL appealing but difficult for preparers - Quality and support for taxonomy is vital - Use XBRL as enabler, not solution October 14, 2004 XBRL IR © Semansys Technologies 17

Lessons learned – Don’t… Just don’t… - Hard code XBRL in application - Show XBRL to user - Forget to loop back as processor - Forget about taxonomy publishing procedures October 14, 2004 XBRL IR © Semansys Technologies 18

XBRL is government policy The Queen Minister of Finance the Internal PM Dutch Administration: Administration XBRL is the most effective way to reduce administrative burden Expense reduction through XBRL: euro 420 million October 14, 2004 XBRL IR © Semansys Technologies 19

n io 2 4 € October 14, 2004 ll i M 0 XBRL IR

External reporting in Holland 33 percent of the admin burden is from annual reports and tax fillings October 14, 2004 XBRL IR © Semansys Technologies 21

Business first, reduce regulation! 1. Project for reducing expenses of € 3 Billion by 2008 1. By harmonizing and improving the business exchange 2. By using XBRL 2. Supported by the Dutch government: • Ministery of Finance • Tax authority (Belastingdienst) • Economic Affairs • Justice • Social Affairs (Sociale Zaken en Werkgelegenheid) • Water boards (Verkeer en Waterstaat) • Environment (VROM) • And with Chamber of Commerce 3. Submitted to the EU during the Dutch Chairmanship (S 22004) October 14, 2004 XBRL IR © Semansys Technologies 22

The future More reporting tasks More Water Boards More local government (900+) And still : simple, easy and short delivery times Health October 14, 2004 Cities Water Boards XBRL IR © Semansys Technologies 23

Conclusions Closed loop solution realized Proven integral approach No threshold for direct utilization Standard software available Implementation at low cost Instant advantages for preparers and regulator October 14, 2004 XBRL IR © Semansys Technologies 24

Noorderzijlvest Reest en Wieden Rivierenland Rijn en Ijssel Vallei & Eem Velt en Vecht Veluwe Brabantse Delta Zeeuws-Vlaanderen Zuiderzeeland Statistics Netherlands (CBS) Gerrit de Bolster Marko Roos Dick van Tongeren Léonard Haakman Logica. CMG Corné Hordijk Ralf van den Ham Deloitte. Dave van den Ende Rob Dubbeldeman October 14, 2004 XBRL IR © Semansys Technologies 25

Thank you! More information: Paul Snijders www. semansys. com Paul. snijders@xbrl-eu. org Paul. snijders@semansys. com October 14, 2004 XBRL in Europe XBRL IR © Semansys Technologies 26