Governmental Financial Reporting Public Sector Accounting Reform in by tcu11291

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									Governmental Financial Reporting
Public Sector Accounting Reform
in Slovakia

Katarína Kaszasová FCCA
Ministry of Finance of the Slovak Republic

World Congress of Accountants
Instanbul, November 2006
Agenda

 Why Slovakia introduced public sector accounting
  reform
 What are main components of reform and their
  status of realization
 What we have learned and what we need to solve
  in forthcoming years
Public Finance Management Reform

To strengthen the institutional capacity for
budgeting, expenditure management and the
financial management of government operations
Program budgeting
Multi-annual budgeting
State Treasury
Agency for Debt and Liquidity Management
Public Finance Management Reform

The present system of public sector accounting
provides neither the full extent of needed financial
information, nor financial information with
following qualities:
relevant, reliable, comparable,
timely,
understandable.
Public Sector Accounting Reform
Objective
Public Sector Accounting is the information system that
    records, analyses, classifies, summarizes and
    communicates public sector entity financial and economic
    events, and their impacts, in terms of both:
 The provision of information required by management
    and senior executives for planning, organizing and
    control, and
 The preparation and provision of financial statements and
    fiscal reports under specific accounting and reporting
    standards for external users
Public Sector Accounting Reform
Components

New accounting and reporting standards
“MoF must produce, in line with new definition of public
finance accounting, specific formats and content for several
public finance accounting and reporting methodologies,
consistent with the standards and trend in other countries.”
Implementation of IPSAS into national accounting standards
Introduction of consolidation procedures
Introduction of conversion procedures
Public Sector Accounting Reform
Components

System support to implementation
“MoF must re-specify the basic operability criteria of, and its
access to, public finance accounting systems to promote
functionality of public finance accounting and reporting and to
be consistent with the standards and trend in other countries.”
System of the State Treasury
New module for consolidation
Financial and administration centers for local government
Public Sector Accounting Reform
Components

Training of accountants
“MoF should develop a clear and comprehensive vision and
strategy how public finance accountants will be able to obtain
appropriate levels of training and experience to meet the
needs of users of public finance accounting information.”
Series of trainings for 6,500 public accountants
Cooperation with universities and professional associations
Communication
Public Sector Accounting Reform
Timetable

Key activities
Project management                          2005 - 2009
New standards preparation                   2005 - 2006
Trainings                                   2005 - 2007
System support pilot projects               2006 - 2007
Adoption of new standards and new systems     1.1.2008
First consolidated financial statements      April 2010
Lessons learned
Preconditions for success

 Recognition that accrual accounting is part of
  reform process
 Broad consultation and acceptance
 Adoption/development of accounting standards
 Participation of accountancy profession
 Existence of robust audit process
   Information and contacts
Ministry of Finance of the Slovak Republic

              Štefanovičova 5
                P.O.Box 82
            817 82 Bratislava 15
              Slovak Republic
            www.finance.gov.sk

								
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