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Extensible Markup Language: A New Technology Tool for the Public Sector.

 in full Extensible Markup Language.

Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations.
 is a new Internet See Web 2.0 and Internet2.  technology tool that holds considerable promise for the public sector. This article explains what XML is and how it works, and discusses its use in seven governmental applications.

Although technology changes are fast paced, the fundamental tasks of government rarely change. The dilemma for public managers is how much time they should devote to learning about and implementing the new technologies as opposed to addressing the basic problems of government with one of the existing technologies. The goal of this article is to examine the technologies that governments use to share information on the Internet and to propose the use of a relatively new language, Extensible Markup Language See XML.

(language, text) Extensible Markup Language - (XML) An initiative from the W3C defining an "extremely simple" dialect of SGML suitable for use on the World-Wide Web.
, or XML.

The article begins with a discussion of the strengths and limitations of current Internet technologies. It then examines the benefits of and the barriers to implementing XML and discusses its relevance to seven different governmental applications: purchasing, tax reporting, financial reporting, budgeting, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , grant management, and performance measurement. The article concludes that while XML is a viable technology for some of these applications, it may never be viable for others. Consequently, depending upon the area of concentration, some public managers should spend the time to learn about XML while others probably should continue to use existing technologies.

A Brief History of the Internet

The Internet was developed in the early 1960s by the Department of Defense's Advanced Research Project Agency. The purpose was to network supercomputers among researchers located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In the late 1960s, four universities were allowed access to the Internet. The Internet was available only to education and government (primarily defense) until 1991 when the National Science Foundation first allowed commercial entities to use it. Since then, the number of Internet hosts has grown to more than 25 million. With the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous

 of the Internet, however, it has become increasingly difficult to find certain pieces of information.

Prior to the development of XML in 1998, most general information on the Internet was presented in Web pages using either HyperText Markup Language (hypertext, World-Wide Web, standard) Hypertext Markup Language - (HTML) A hypertext document format used on the World-Wide Web. HTML is built on top of SGML. "Tags" are embedded in the text. A tag consists of a "<", a "directive" (in lower case), zero or more parameters and a ">".  (HTML HTML
 in full HyperText Markup Language

Markup language derived from SGML that is used to prepare hypertext documents. Relatively easy for nonprogrammers to master, HTML is the language used for documents on the World Wide Web.
) or the Portable Document Format (file format) Portable Document Format - (PDF) The native file format for Adobe Systems' Acrobat. PDF is the file format for representing documents in a manner that is independent of the original application software, hardware, and operating system used to create those documents.  (PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. ). Exhibit 1 provides a brief comparison of HTML, PDF, and the newer XML. Both HTML and PDF are relatively easy to use for both Internet publishers and users. This ease of use has been a major factor in the proliferation of the number of Web sites.

HTML and XML are "open standards Specifications for hardware and software that are developed by a standards organization or a consortium involved in supporting a standard. Available to the public for developing compliant products, open standards imply "open systems;" that an existing component in a system can be replaced " that are maintained by the World Wide Web Consortium or W3C (World Wide Web Consortium, An international industry consortium founded in 1994 by Tim Berners-Lee to develop standards for the Web. It is hosted in the U.S. by the Computer Science and Artificial Intelligence Laboratory (CSAIL) at MIT (  (, meaning they are free and available to all Internet publishers and users. PDF is a proprietary product of the Adobe Corporation, but the Adobe Acrobat Reader The former name of Adobe Reader. See PDF.  is free, so any Web user can access PDF data after downloading the Reader. Publishers must purchase software from Adobe in order to create PDF documents.

When making Web pages, HTML provides a layout that includes text, images, and push buttons. PDF is merely a scanned version of text or pictures, while XML creates catalogs of information. The advantage of XML is that it gives end users the flexibility to dynamically access and use data because the catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C.  specifies the location and description of the various pieces of data used in Web documents.

In comparison, HTML and PDF statically deliver information to end users, much like a fax machine. Once the information is received or accessed, it is very difficult to manipulate. Only slow searches are available in HTML, while PDF cannot be searched until the user locates and opens the PDF file See PDF. . Unless the user knows the exact location or name of the PDF file, the data within PDF files are virtually hidden.

Cataloging information in XML can be accomplished in multiple languages. HTML, however, is language-specific, making translations between languages very difficult. Since PDF is an image, it does not discriminate dis·crim·i·nate  
v. dis·crim·i·nat·ed, dis·crim·i·nat·ing, dis·crim·i·nates

 between languages. In terms of moving around the Internet, HTML allows hot links from the host Web site to other Web sites and pages. Similarly, XML provides X-links to other Web databases. X-links, however, are more efficient in linking to the exact data desired and reduce missed Web pages. Users can link out from a PDF document, but cannot link into a PDF document from other Web sites.

XML allows dynamic, on-the-spot data analysis. Data from XML Web sites See XML schema repository.  can be seamlessly downloaded onto application programs for spreadsheet or statistical analysis. HTML and PDF also can be used for data analysis, but not without cutting and pasting or retyping, which can require significant time and effort, especially as the number of sources increases.

In summary, XML provides faster search and data analysis capabilities than either HTML or PDF, which can potentially reduce the workload of Web users. The next section explains in some detail how XML works. The purpose is to introduce those concepts that are important for public managers to understand in order to conceptualize con·cep·tu·al·ize  
v. con·cep·tu·al·ized, con·cep·tu·al·iz·ing, con·cep·tu·al·iz·es
To form a concept or concepts of, and especially to interpret in a conceptual way:
 how XML might improve the applications for which they are responsible.

XML Basics

Two unique features of XML enable the cataloging of data described in the previous section: "tags" and "taxonomies." A tag is a defining label attached to data presented on the Internet. The taxonomy taxonomy: see classification.

In biology, the classification of organisms into a hierarchy of groupings, from the general to the particular, that reflect evolutionary and usually morphological relationships: kingdom, phylum, class, order,
 lists all of the tags for a specific application and the exact rules for how the tagged data will be presented. The technical term for a taxonomy is a Document Type Definition, or DTD (Document Type Definition) A language that describes the contents of an SGML document. The DTD is also used with XML, and the DTD definitions may be embedded within an XML document or in a separate file. . The more popular term "taxonomy" will be used for this presentation.

To illustrate tags and taxonomies for text, assume the characters "Ken" and "Smith" appeared on a Web page. In XML, tags such as "FirstName" and "LastName" would probably be attached to "Ken" and "Smith" respectively. The taxonomy might require that the first letter of these elements be capitalized while the remaining letters are lowercase. Tags also can be more restrictive such as "AuthorFirstName."

To illustrate tags and taxonomies for numbers, assume the characters "$120,000.00" and "10000" appeared on a Web page. The tags might be "AnnualSalary" and "MonthlySalary" respectively. Notice that the format differs in at least three ways: use of dollar sign, use of comma, and number of decimal places decimal place
The position of a digit to the right of a decimal point, usually identified by successive ascending ordinal numbers with the digit immediately to the right of the decimal point being first:
. The taxonomy would specify how the information was to be presented on at least these three dimensions so that there would be no confusion among users. The first tag could also be "AnnualSalaryTimes3," "DesiredSalary," or "Parent'sSalary."

How do the relatively simple concepts of tags and taxonomies facilitate a radical change in the Internet that is not possible with HTML and PDF technologies? Recall that two of the major problems with the Internet relate to speed and search. One of the reasons for the search difficulty is that most of the data is not organized, cataloged, or defined (i.e., tagged) in any manner. As a result, it is difficult to find all relevant occurrences of "Ken Smith" in HTML or PDF Web sites. The task would be much faster and more accurate in XML if the search were for "AuthorFirstName" equals "Ken" and "AuthorLastName" equals "Smith."

Even for those pieces of data that can be located via a traditional search engine, the presentation of the data is rarely in a consistent format across Web pages. If a user were looking to purchase basic white copy paper, for example, pricing could be by the sheet, by the ream, or by the box. As such, the user would have to spend significant time interpreting this data. XML, however, makes it possible to search for all vendors with "product" equals "20lbWhitePaper." The search would return all product vendors, and the user could then inquire in·quire   also en·quire
v. in·quired, in·quir·ing, in·quires

1. To seek information by asking a question: inquired about prices.

 as to the "PricePerSheet" or whatever tag was established in the taxonomy.

Another significant benefit of XML is that users can perform data analysis on their own computers. In the white copy paper search above, the user would obtain all of the product vendors along with all of the other fields in the "taxonomy" (e.g., delivery date, credit terms Credit Terms

The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period.
, address, phone number, contact person, quantity discounts, quantity available, etc). Once data from all vendors is acquired, the user can analyze the data using his or her own constraints CONSTRAINTS - A language for solving constraints using value inference.

["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)].
, whether they are price, delivery, or even local preferences. Also, the analysis would be done on the user's computer rather than having to access a distant server for every inquiry or sort. This saves a significant amount of time for both the user and the publisher's server.

Barriers and Costs to Using XML

Like any other new technology, there are barriers and costs associated with XML. Exhibit 2 summarizes these barriers and provides an estimate of the range of costs for each barrier in terms of both money and time. The minimum costs for publishers and users can be extremely low, while the maximum costs can be quite high, especially for publishers. Depending on their activities, governments can be both publishers and users. Both of these perspectives are discussed below.

Since most governments already have Web sites and computer equipment, they should not have to make significant investments in new hardware unless the number of transactions increases substantially enough to require additional servers. Additional servers also may be needed if a particular government wants to coordinate the XML databases A database that stores XML documents. There are two types. The first is the "XML-enabled database," which is a relational or object-oriented database that has been extended to hold XML data.  of a consortium of other governments. As users, there will be very little need for governments to upgrade or add hardware since XML uses existing hardware technology. If employees can access the Web, they have the hardware for XML applications.

Both publishers and users may need to purchase user-friendly software rather than using the open standards. Just as most Web pages today are created with user-friendly software packages rather than raw HTML, it is expected that vendors will create easy-to-use software for both publishing and viewing XML data. Regardless of which software is used, both publishers and users will need to learn how to use it in order to reap the full benefits of XML.

Developing the taxonomy is a very simple process in some applications and nearly impossible in others. The key to developing a successful taxonomy is to obtain consensus among the publishers and users. While users tend to want as much flexibility as possible in the taxonomy, publishers usually want the taxonomy to be as similar to their current databases as possible. Because there are often several groups of stakeholders Stakeholders

All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government.
, it is critical to manage the political issues that inevitably arise during taxonomy development (unless one party has the power to simply dictate the taxonomy). Successful taxonomy development is probably the most important step in moving an application to XML.

Tagging data is a concern only for publishers, but it may be so prohibitive pro·hib·i·tive   also pro·hib·i·to·ry
1. Prohibiting; forbidding: took prohibitive measures.

 as to keep an application from being implemented in the first place. For those applications where taxonomy development is relatively easy, it is likely that there are common definitions of data such that existing databases will be similar to the taxonomy or easily converted. For those applications where taxonomy development is difficult, the tagging will probably also be difficult since there is not significant agreement as to what data should be processed.

At first it may seem that data analysis is only a concern for users, just as tagging is only a concern for publishers. However, there are instances where the publishers of the data will need to verify the accuracy of the information they present (e.g., financial statements). In addition, publishers may need to monitor information presented by other publishers (e.g., vendors in a purchasing application). These requirements may inhibit inhibit /in·hib·it/ (in-hib´it) to retard, arrest, or restrain.

1. To hold back; restrain.

 some applications from being implemented; however, this extra effort is simply one of the new costs of the new economy. Since there are so many benefits to both suppliers and buyers, applications like purchasing will move to XML in spite of these extra costs to publishers. Also, some of these costs are offset by the cost and time savings detailed below.

Governmental Applications

This section discusses how XML might be applied in seven different governmental applications. The choice of these seven was mostly arbitrary, although the authors intentionally in·ten·tion·al  
1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary.

2. Having to do with intention.
 selected some applications that are strong candidates for XML (e.g., purchasing) and others that are not (e.g., financial reporting). Hundreds of governmental applications might be considered as to their likelihood of improvement with XML. Managers are encouraged to develop an estimate of the costs and benefits of the applications for which they are responsible through an approach similar to Exhibit 3.

As government managers estimate these costs and benefits they should consider XML not just from the publisher's point of view (sending XML data), but also from the user's point of view (receiving XML data). For example, a procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  manager might set up an XML Web site to advertise requests for proposals (RFP (Request For Proposal) A document that invites a vendor to submit a bid for hardware, software and/or services. It may provide a general or very detailed specification of the system.

1. (business) RFP - Request for Proposal.
) to potential vendors. Alternatively, a purchasing manager A Purchasing Manager is an employee within a company, business or other organization who is responsible at some level for buying or approving the acquisition of goods and services needed by the company.  may wish to search and download lists of vendors, products, and prices in order to make decisions about which vendor to use to purchase a particular product. Each case requires government managers to understand XML, but from different perspectives.


Purchasing is probably the perfect application for this new technology. The private sector already has established several "markets" in which buyers can access vendor data and order products online. Governments also have established and are participating in these markets. There are several reasons why this application is so suited to XML.

It is very easy to establish tags for both generic items (e.g., paper, staples staples

U-shaped stainless steel or vitallium units with sharp points used for surgical fixation.

epiphyseal staples
used to staple epiphysis to metaphysis; have metal bracing at the corners.
, computers, desks) and specific items (e.g., Dell Dimension Dell Dimension is a line of home desktop computers manufactured by Dell, Inc. As of June 2007, Dell no longer makes the Dimension line other than for business and in non American markets. The high-end Dimension 9200 (XPS 410 in the Amercian market) is still manufactured.  with 486 Intel processor or Xerox 3452 copier). It is also relatively easy for vendors and buyers to agree upon a taxonomy for how to share information. Most of these vendors and buyers already transact An earlier e-commerce system for the Web from Open Market that included order capture and secure order fulfillment using credit cards, ecash and other payment systems. It included customer service and subscription administration capabilities as well as an integrated database for reporting  with each other and are accustomed to sharing the information in the taxonomy. Vendors (publishers) might save a great amount of time because every one of their buyers now uses the exact same terminology.

Neither vendors nor buyers should have to invest in a significant amount of hardware because they already have hardware to process a large number of transactions. There could even be a reduction in hardware needs as the common terminology reduces the need to communicate differently with every buyer. Both vendors and buyers will need to invest in software to expedite ex·pe·dite  
tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites
1. To speed up the progress of; accelerate.

 the transactions they desire to conduct. Based on the number of markets already in existence, it appears that there is a perceived return on this investment.

Finally, the tagging of the data does not appear to be a significant cost or barrier. Since most vendors already have databases of the quantity and description of the items for sale, it should be a relatively simple process to add the agreed upon Adj. 1. agreed upon - constituted or contracted by stipulation or agreement; "stipulatory obligations"

noncontroversial, uncontroversial - not likely to arouse controversy
 tags to their existing data.

Financial Reporting

In 1998, a Seattle CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000.  named Charles Hoffman was intrigued by the possibilities of XML for reporting financial statements on the Internet. Hoffman recognized that it was difficult to find and process financial statement information on the Web using HTML or PDF, especially for analysts. Hoffman developed a taxonomy for financial statements called XBRL (EXtensible Business Reporting Language) A specification for publishing financial information in the XML format. It is designed to provide a standard set of XML tags for exchanging accounting information and financial statements between companies and analysts.  (Extensible Business Reporting Language). More than 100 major companies, including some of the largest accounting, investing, and technology firms, have joined the effort to develop XBRL ( In February 2001, Morgan Stanley To comply with Wikipedia's , the introduction of this article needs a complete rewrite.  Dean Witter Dean Witter may refer to:
  • Dean G. Witter (businessman, Co-founder of Dean Witter & Company)
  • Dean Witter Reynolds (brokerage firm, now known as Morgan Stanley)
 became the first company to report financial statements to the SEC using XML.

Although a federal government taxonomy is in the draft stage, a taxonomy for state and local government accounting has not been developed to date. In spite of the strong interest in XBRL, this particular application of XML does not appear to be well suited to governments. Governmental accountants currently have an increased workload because of the demands of implementing the requirements of GASB GASB Governmental Accounting Standards Board  Statement No. 34. It is unlikely that publishers have the time to also convert their financial statements to XBRL. GASB Statement No. 34 also complicates the development of a taxonomy. Smaller governments are not required to implement GASB Statement No. 34 for two more years, so not all publishers may be using the same reporting format.

Another obstacle to XBRL implementation in the public sector is the time and effort required to tag the data from existing accounting systems. In contrast to a vendor's product database, many governmental accounting Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities. In the United States, for instance, there are three levels of government which follow different accounting standards set forth by independent, private  databases are not completely centralized cen·tral·ize  
v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es
1. To draw into or toward a center; consolidate.

 or standardized standardized

pertaining to data that have been submitted to standardization procedures.

standardized morbidity rate
see morbidity rate.

standardized mortality rate
see mortality rate.
. Thus, it will take some time to convert or create a database of the accounting records that agrees with the taxonomy.

The need for additional hardware to support XBRL is unclear because there has not traditionally been a large interest in governmental accounting reports; however, if publishing financial statements in XML increases usage, governments may need to acquire new hardware to serve this increased traffic. An investment in software also may be required. Since there are not any appreciable ap·pre·cia·ble  
Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible.
 benefits anticipated (in contrast to purchasing), it is unlikely that governments will seek to invest in software specifically for XBRL. However, if the government already has acquired user-friendly XML software for other applications, that software could be borrowed by the accounting function.

Finally, there is very little consensus as to the level of access users should have to either corporate or governmental accounting data. Although corporations certainly do not have to be completely open with their financial statements, governments face far greater scrutiny because of their accountability to taxpayers. This is in sharp contrast to the purchasing example in which suppliers understand that they must be completely open in order to effectively compete.

Given all of these concerns, the costs of XBRL for government clearly outweigh out·weigh  
tr.v. out·weighed, out·weigh·ing, out·weighs
1. To weigh more than.

2. To be more significant than; exceed in value or importance: The benefits outweigh the risks.
 the direct benefits. As the costs of implementing XBRL decline, however, governments should reconsider re·con·sid·er  
v. re·con·sid·ered, re·con·sid·er·ing, re·con·sid·ers
1. To consider again, especially with intent to alter or modify a previous decision.

 the benefits of greater access to financial records to creditors, the public, and special interest groups.

Tax Reporting (Form 990)

Another application discussed by Charles Hoffman is the use of XML for reporting the information on Federal Tax Form 990. This form is used by nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive.

Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law.
 entities to report various pieces of information to the federal government, including the salaries of the highest-paid executives. According to according to
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

 Hoffman, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  currently retypes information from Form 990 into another database for more widespread distribution. He notes that a taxonomy could be created using the exact lines of the tax form. A simple XML Simple XML
Simple XML is a variation of XML containing only elements. All attributes are converted into elements. Not having attributes or other xml elements such as the XML declaration / DTDs allows the use of simple and fast parsers.
 form would not require any additional work on the part of tax accountants. However, transmission of these forms in XML would result in tremendous savings to the federal government. Since the data from all reporting entities would be in the same format, the data could be analyzed an·a·lyze  
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.

2. Chemistry To make a chemical analysis of.

 without any additional re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had.
     2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the
. Hoffman estimates that this relatively simple application could save as much as $5 million dollars.

This application certainly appears to have substantial benefits with limited costs. The IRS, of course, would have to develop the taxonomy and provide any necessary software to facilitate online reporting. The reporting entities would probably not incur any additional hardware or software costs, and the process of preparing the form would be significantly streamlined. They would not have any difficulty in tagging the data since it is already being reported according to IRS specifications. For the parties that are interested in analyzing this data, the use of XML allows them to get quicker, easier, and more consistent access to the desired data. The IRS and other agencies receiving standardized data stand to gain significant benefits by using XML.


Using XML, budget managers could receive proposed and actual budgets from subordinate agencies, consolidate the numbers into their budget, and send the consolidated budget to a superior agency electronically. This activity could occur from the lowest level of government to the highest level of government to create a standardized budgeting process. The elements of the taxonomy could be taken from the OMB OMB
Office of Management and Budget

Noun 1. OMB - the executive agency that advises the President on the federal budget
Office of Management and Budget
 standard budget form. Although this particular application is particularly suited to the federal budget process, XML also holds enormous potential for highly standardized state and local government budget processes. The use of XML for budgeting is similar to a concept proposed by to consolidate the financial statements of large conglomerates A Conglomerate is the term used to describe a large corporation that consists of diverse divisions. Conglomerate companies tend to be large multinational corporations with operations in multiple regions of the world. .

The costs or barriers to the use of XML for budgeting depend on the level of standardization standardization

In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting
 of the budgeting process. If the process is highly standardized, XML could significantly improve the efficiency of data collection (via the Web), data analysis, and budget revisions. Since XML works just as well with text as it does with data (e.g., program descriptions), it facilitates the printing and presentation of budget documents in various user-defined formats. Using XML, managers could tailor budget documents to different users by simply selecting which data to include and which to exclude. One city council member, for example, may wish to receive only high-level summaries while another may desire line-item detail. Both could be easily accommodated using XML. XML is probably nor appropriate for governments that lack standardized budget processes. To benefit from the advantages of XML, these governments would first need to develop standard meanings and definitions.

Human Resources

Another application of XML that holds significant promise for governments is the collection and dissemination dissemination Medtalk The spread of a pernicious process–eg, CA, acute infection Oncology Metastasis, see there  of data about jobs and job applicants (resumes). This is one application in which governments might conceivably con·ceive  
v. con·ceived, con·ceiv·ing, con·ceives
1. To become pregnant with (offspring).

 assume the roles of both publisher (job openings) and user (resume bank). In either case, governments stand to benefit from this technology by reducing the turnaround time (1) In batch processing, the time it takes to receive finished reports after submission of documents or files for processing. In an online environment, turnaround time is the same as response time.  for filling openings and by improving their chances of selecting the most-qualified candidates. Although there may be some hardware, software, and tagging costs, the major obstacle to this application is the development of a workable taxonomy.

The government itself will probably be responsible for developing the taxonomy. The taxonomy should include all of the fields that a government will need to screen or evaluate prospective employees. The taxonomy may require different tags for different positions (e.g., a professional certificate field for an accountant). Once the taxonomy is established, the government can accept resumes via a Web page. This would require applicants to manually enter their data in the format chosen by the government. Once the resume bank is filled, the hiring department could quickly search for all candidates meeting certain criteria. The search could be quickly restricted or expanded depending on the number of candidates meeting the criteria. An automatic e-mail also could be sent to applicants that had been pre-screened as eligible.

Grant Management

State and local governments receive and distribute millions of dollars in grants each year. XML could be used to facilitate both grant applications and ongoing reporting requirements. These applications are similar to taxes in that any existing forms could easily be converted to XML and save or re-allocate the time spent in re-entry. Given the more timely and accurate reporting, resources could be shifted from data entry to data analysis. The time required for tagging is likely to be unimportant un·im·por·tant  
Not important; petty.

unim·portance n.
 since governments already report the data to be tagged.

Government managers should view this application from the perspective of both the publisher and the user. Through XML, governments can provide real-time access to grant information and even facilitate compliance with reporting and other requirements. Likewise, governments could more effectively search the Web for information on potential sources of funding. XML has the potential to dramatically reduce the amount of paperwork involved in applying for and complying with grants.

Performance Measurement

The Internet presents a tremendous opportunity for governments to improve accountability by reporting performance measures. In addition to the benefits of using performance measures internally, proponents of performance reporting also recognize the value of using performance measures to benchmark to other entities. Benchmarking allows governments to assess their performance by comparing similar measures to similar jurisdictions. Effective benchmarking, however is difficult and requires the consideration of mitigating mit·i·gate  
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates
To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve.

To become milder.
 factors as diverse as the impact of population density on the crime rate or annual snowfall on snow removal costs. In spite of the potential usefulness of performance measures in XML, the costs and barriers are substantial.

One of the most significant obstacles to benchmarking with XML is the development of a taxonomy. Many performance measures are specific to a department or program of a particular entity. A primary criticism of performance measurement is that certain functions of government are not measurable at all. This kind of dissension greatly complicates the development of a workable taxonomy.

Like financial statements, there may be some governments that are not willing to share performance data with the public. And some governments that have engaged in performance measurement programs have found it necessary to upgrade their computer systems. It is possible that the use of XML in performance measurement will require additional hardware and software. Finally, given the disparity dis·par·i·ty  
n. pl. dis·par·i·ties
1. The condition or fact of being unequal, as in age, rank, or degree; difference: "narrow the economic disparities among regions and industries" 
 in performance measures between governments, tagging data is likely to be a costly endeavor.

At least for the time being, it does not appear that the benefits of using XML for the purpose of benchmarking are significant enough to justify the costs of developing large-scale taxonomies. However, several organizations already have undertaken extensive government benchmarking projects, which suggests that a taxonomy probably already exists. Time will tell whether or not the taxonomies already in development could become accepted by enough jurisdictions to allow for widespread benchmarking using XML technology.


XML is the latest Internet technology with the potential to improve government operations This article aims to describe the financial expenditure associated with the operations and processes of world governments of all levels. Size of economic footprint

Main articles: Government ownership and Government spending
. Public managers should understand this new technology and carefully analyze the costs and benefits of moving applications to the Internet and using XML versus HTML, PDF, or some other technology. XML already is being used for purchasing applications and has enormous potential for human resource applications. However, the costs of some applications still exceed the benefits, making their implementation unlikely at least until the barriers are overcome or the benefits enhanced.

KEN SMITH, PH.D., CPA, is an assistant professor at Pepperdine University Pepperdine University is a private institution of higher learning affiliated with the Church of Christ in unincorporated Los Angeles County, California, United States. The university's location overlooks the Pacific Ocean and is adjacent to the city limits of Malibu.  in Malibu, California Malibu is a city located in western Los Angeles County, California, United States. As of the 2000 census, the city population was 12,575.

The city of Malibu is a 27-mile (43.
. He completed his dissertation dis·ser·ta·tion  
A lengthy, formal treatise, especially one written by a candidate for the doctoral degree at a university; a thesis.


, "Performance Reporting in United States Cities," in 2001 from the University of Missouri. He previously served as an audit manager/government practice leader for a large international CPA firm. MOHAMMAD ABDOLMOHAMMADI, DBA, CPA, is the John E. Rhodes Professor of Accounting at Bentley College Bentley College is located at 175 Forest Street in Waltham, Massachusetts, 10 miles west of Boston. Founded as a school of accounting and finance in Boston's Back Bay neighborhood, Bentley moved to Waltham in 1968 and today is ranked 31 on Business Week's top 100 undergrad  in Waltham, Massachusetts One of the early centers of the Industrial Revolution in northern America, Waltham is a city in Middlesex County, Massachusetts, United States. The population was 59,226 at the 2000 census. . He has a doctorate degree in business administration from Indiana University Indiana University, main campus at Bloomington; state supported; coeducational; chartered 1820 as a seminary, opened 1824. It became a college in 1828 and a university in 1838. The medical center (run jointly with Purdue Univ. , and has published many articles in academic and professional accounting, behavioral sciences behavioral sciences, those sciences devoted to the study of human and animal behavior.
, and ethics ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a  journals. JON HARRIS Jonathan Cecil Harris (born June 9, 1974 in Brooklyn, New York) was an American football defensive lineman in the NFL for the Philadelphia Eagles. He played college football at the University of Virginia and was drafted in the first round of the 1997 NFL Draft. , MPP (Massively Parallel Processing or Massively Parallel Processor) A multiprocessing architecture that uses up to thousands of processors. Some might contend that a computer system with 64 or more CPUs is a massively parallel processor. , is currently in the Master of Science in Accountancy program at Bentley College. Prior to entering Bentley, he earned a Master of Public Policy degree from Harvard University's Kennedy School of Government. He also won honorable mention at the First Annual Academic XBRL Competition.
Exhibit 1


Criterion      HTML

Web Page       Creates Web page layout
 Creation      (text, image, push buttons)

Delivery       Sends Web pages as fancy
               fax documents that can be
               viewed on various computers
               (appearance may differ from
               computer to computer)

Search         Allows searches, but often
 Efficiency    slow and inaccurate

Culture and    Language specific, making
 Language      exchange between
               languages difficult

Link to Other  Provides hot Web links to
 Web Pages     various Web pages, but can
               result in Error 404 (File
               Not Found)

Data           Very limited to where and
 Definitions   how data appears; cannot
 (tags)        define what data means

Data           Static processing--must
 Processing    "cut and paste" from each
 by Users      Web site and, if formats
               differ, also must

Publishing     Relatively easy with
 Data          templates in packages such
               as Microsoft FrontPage
               and Claris Home Page

Criterion      PDF

Web Page       Creates scanned version of
 Creation      printed documents for Web

Delivery       Sends Web pages as fancy
               fax documents that can be
               viewed on various computers
               (appearance is exactly the
               same on all computers)

Search         Does not allow searches
 Efficiency    unless already within PDF

Culture and    Language is not an issue (a
 Language      document in any language
               can be scanned)

Link to Other  No Web link into the PDF
 Web Pages     file from any Web page, but
               links out to Web pages

Data           N/A. Because it is a picture
 Definitions   there are no pieces of data
 (tags)        other than the picture itself

Data           N/A. Because it is a picture
 Processing    there are no pieces of data
 by Users      other than the picture itself

Publishing     Use Acrobat PDF Writer to
 Data          translate text documents or
               scan documents for

Criterion      XML

Web Page       Creates Web-enabled
 Creation      catalogs of information

Delivery       Specifies the location and
               description of individual
               data items that appear on
               the Web

Search         Allows high speed and
 Efficiency    accurate searches

Culture and    The data entered in a
 Language      generic form can be used
               by Web pages in any
               language by a simple
               translation program

Link to Other  Provides X-links to data
 Web Pages     bases; no Error 404
               (File Not Found)

Data           Almost unlimited ability to
 Definitions   define the meaning of each
 (tags)        piece of data

Data           Dynamic processing allows
 Processing    users to download entire
 by Users      data set of multiple
               publishers and analyze on
               desktop software packages

Publishing     May be easy to tag if current
 Data          database is same as taxonomy,
               but will require more time and
               effort as existing data differs
               more from taxonomy

Portions of this exhibit are adapted from Jon Bosak and Tim Bray, "XML
and the Second-Generation Web," "Scientific American (May 1999): 89-93.
Exhibit 2


Publisher Cost Range

                      Cash Outlay                 Time and Effort
                      Minimum  Maximum        Minimum       Maximum

Hardware                None   Moderate        None           Low
Software                Low    Moderate         Low           High
Taxonomy                None   Moderate         Low           High
Data Tagging            Low      High           Low           High
Data Analysis           None   Moderate        None         Moderate

User Cost Range

                      Cash Outlay                 Time and Effort
                      Minimum  Maximum        Minimum       Maximum

Hardware                None     Low           None           Low
Software                None   Moderate         Low           High
Taxonomy                None   Moderate         Low           High
Data Tagging            None     None          None           None
Data Analysis           None   Moderate         Low           High
Exhibit 3


                         BARRIERS                        BENEFITS
Application      Publisher        User        Publisher        User

Purchasing          Low            Low          High           High

Tax Reporting       Low            Low          None         Moderate

Financial          High         Moderate         Low            Low

Budgeting        Low-High       Low-High      Low-High       Low-High

Human          Low-Moderate   Low-Moderate  Moderate-High  Moderate-High

Grant            Low-High       Low-High      Low-High       Low-High

Performance    Moderate-High    Low-High         Low         Low-High

Application    Prediction

Purchasing     Already being used
               and growing.

Tax Reporting  Needs an innovative
               publisher or mandate
               by user.

Financial      Publishers will resist,
Reporting      users not likely to

Budgeting      Yes, for those with
               standard processes.
               No, for others.

Human          Innovators will use;
Resources      more benefits to
               larger entities.

Grant          Yes, for those with
Management     standard reports.
               No, for others.

Performance    Smaller groups (i.e.,
Measurement    North Carolina) will use,
               widespread use is
               doubtful until good
COPYRIGHT 2001 Government Finance Officers Association
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

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Title Annotation:includes discussion of current Internet technology strengths and limitations
Author:Smith, Ken; Abdolmohammadi, Mohammad; Harris, Jon
Publication:Government Finance Review
Geographic Code:1USA
Date:Dec 1, 2001
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