New International Public Sector Financial Accountability Index to Stimulate PFM Reform

Manchester, English English

At the Chartered Institute of Public Finance and Accountancy (CIPFA)’s 2017 Conference in Manchester, UK, the International Federation of Accountants (IFAC) and CIPFA announced the launch of the Public Sector Financial Accountability Index.

Developed jointly by IFAC, as part of its Accountability. Now. initiative, and CIPFA, with the Zurich University of Applied Sciences as knowledge partner, the index will be the first of its kind to provide an accurate global picture of public sector financial reporting quality.

In particular, the index will provide a picture of the extent of accrual accounting and adoption of International Public Sector Accounting Standards. It will also aim to provide a better understanding of accounting and budgeting reform plans, and help stimulate public financial management (PFM) reforms.

The main output will be a regularly updated country-by-country public database. It will initially focus on central government, and expand over time to include state/provincial and local government.

The index will initially be populated with research data on individual countries and regions, collected by various international institutions. National standard setters will be invited to review, comment upon, and supplement the information, after which the first set of data will be made available in November 2017.

“The Public Sector Financial Accountability Index will provide better insight into the extent of global public financial reporting reform, and stimulate further reform,” said Fayez Choudhury, IFAC Chief Executive Officer.

“High-quality accrual-based information that captures the entire picture of a government’s finances and its funding commitments, both now and in the future, is the foundation for strong public financial management,” said Rob Whiteman, CIPFA CEO. “It strengthens economies, and, most importantly, builds trust with citizens. CIPFA is proud to be supporting the development of this index, which we believe will be a relevant and timely contribution to global PFM reform.”

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed.

Accountability. Now. is an initiative of the International Federation of Accountants (IFAC) to promote high-quality financial accounting and reporting by governments to improve transparency and help strengthen public financial management and accountability in the public interest. Further information can be obtained via the Accountability. Now. brochure.

2017 CFRR-IFAC Regional SMP Forum

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IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.

The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. More than 20 representatives from regional and national professional accountancy organizations (PAOs) in Central Asia and Southeast and Eastern Europe attended, as well as practitioners, SMPs, and other stakeholders.

International and regional subject-matter experts shared important insights on professional ethics, efficiently implementing international standards, and practice management, among other topics.

Speakers and moderators included:

  • Rachel Grimes, IFAC President
  • Edward Olowo-Okere, Director, Governance, The World Bank
  • Gunter Schall, Head of Private Sector & Development, Austrian Development Agency
  • Monica Foerster, Chair, IFAC SMP Committee
  • Mats Olsson, Deputy Chair, IFAC SMP Committee
  • Hilde Blomme, Deputy Chief Executive, Accountancy Europe
  • Carl Peterson, Vice President, Small Firm Interests – Public Accounting, Association of International Certified Professional Accountants
  • John Hodge, Senior Financial Management Specialist, CFRR, The World Bank
  • Ken Siong, Technical Director, International Ethics Standards Board for Accountants
  • Paul Thompson, Director, European Federation of Accountants and Auditors for SMEs
  • Ardiana Bunjaku, Executive Director, Society of Certified Accountants and Auditors of Kosovo
  • Robyn Erskine, Member, IFAC SMP Committee
  • Kalina Sukarova, Senior Financial Management Specialist, CFRR, The World Bank
  • Beverley Bahlmann, Deputy Director, International Auditing and Assurance Standards Board
  • Dawn McGeachy, Member, IFAC SMP Committee
  • Hysen Cela, President, Institute of Authorized Chartered Auditors of Albania
  • Manoj Fadnis, Member, IFAC SMP Committee
  • Bonnie Ann Sirois, Senior Financial Management Specialist, CFRR, The World Bank
  • Aliaksey Yeudachimovich, Belarus Association of Auditors
  • George Williw, Member, IFAC SMP Committee
  • Antoni Gomez, Member, IFAC SMP Committee
  • Wassim Khrouf, Member, IFAC SMP Committee
  • Alfred Borgonovo, Senior Financial Management Specialist, CFRR, The World Bank

The Forum agenda is available online; presentations are available below.

Capacity Building in Context: Insights from the PAO Development Committee

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What does it take to establish a national professional accountancy organization (PAO)? How about one that is relevant, sustainable, and ready to adopt and implement international standards and best practices? Is there a set formula for success?

At a recent IFAC Professional Accountancy Organizations (PAO) Development Committee meeting, members brainstormed possible solutions to PAO challenges in specific country contexts, building on committee members’ years of experience working with PAOs and accountancy regulators. Using fictional case studies of PAOs operating in different jurisdictions and circumstances, discussions focused on overcoming barriers, seizing opportunities, and identifying and engaging with key stakeholders to achieve set objectives.

The stories told provide though-provoking insight into approaching the accountancy profession and PAO development journey.

Quality & Development eNews: Over 100 Member & Country Profiles Provide Insights to Global Profession

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Mauritius Institute of Professional Accountants
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Orden dos Contabilistas Certificados
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Union of Accountants, Auditors, and Financial Workers of the Federation of Bosnia and Herzegovina
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Jordan SMO Workshop
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IFAC President Rachel Grimes Addressing Accountancy Education Workshop
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ASEAN Council Meeting
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Costa Rica SMO Workshop
Over 100 Member Organization & Country Profiles Now Available Online

Comprehensive profiles of IFAC member organizations and the jurisdictions in which they operate are available on the IFAC website. These in-depth profiles support transparency; adoption and implementation of international standards; and the public interest by demonstrating international standards’ widespread use and the profession’s efforts to encourage adoption, advance implementation, and support the businesses, governments, and communities in their nations.

For more information on the new webpages and how to locate and use the information, take a look at our previous eNews issue, which served as a mini-primer on the new content. Please email any feedback or questions to compliance@ifac.org.

What We’ve Learned

To celebrate hitting our 100th profile mark, we’ve collated high-level trends and learning—gleaned from reading the published profiles.

  • High quality preparation of financial statements has not been overlooked.
    Egypt, Finland, Iraq, Pakistan, and South Africa have implemented IFRS certification courses, issued guidance, and/or established partnerships with stakeholders to support proper implementation.
  • Dedicated promotion of IPSAS continues.
    Recognizing the role PAOs play in the public sector, PAOs in Bangladesh, Benin, Lesotho, Papa New Guinea, and Serbia are actively promoting the adoption and implementation of IPSAS through discussions with government officials and training their members.
  • PAOs are successfully advocating on behalf of the profession and their members.
    The successful passage of new national accountancy laws in the Bahamas and the Cayman Islands, and OHADA regional requirements, were largely due to PAOs’ advocacy efforts.

We recommend reviewing the profiles for your jurisdiction, member organization, and other countries to more fully understand the accountancy profession in your nation and other areas.

IFAC Welcomes Three New Members

The Mauritius Institute of Professional Accountants, Ordem dos Contabilistas Certificados, and the Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina became IFAC members in November 2016 after previously being associates. We look forward to our continued collaboration to strengthen the accountancy profession worldwide.

Spotlight On: Global Efforts to Strengthen the Accountancy Profession
  • Peru
    In October 2016, the Junta de Decanos de Colegios de Contadores Públicos del Perú met with Peruvian universities authorities and reached three important agreements that will contribute to International Education Standards adoption. Read more in Spanish>>
  • Laos & Singapore
    In October 2016, the Institute of Singapore Chartered Accountants and the Lao Chamber of Professional Accountants and Auditors signed a Memorandum of Understanding to further develop the accountancy profession in Laos. Read more>>
  • Brazil
    The Instituto dos Auditores Independentes do Brasil (Institute of Independent Auditors of Brazil, or IBRACON) and the Conselho Federal de Contabilidade (Federal Accounting Board, or CFC) are working to adopt the International Ethics Standards Board for Accountants’ new standard on responding to non-compliance with laws and regulations (NOCLAR) one step at a time. Read how>>
  • Lesotho
    The Lesotho Institute of Accountants has launched the Lesotho Professional Accountancy Programme, the country’s first locally-developed accounting qualification, designed to strengthen professionalization in the private and public sectors. Learn more>>
Supporting Member Organizations
  • Realizing the Power of PAOs: Professional Qualification and Accountancy Education Workshop
    In conjunction with the 4th African Congress of Accountants in Kampala, Uganda, IFAC and the Pan African Federation of Accountants held an interactive workshop on the approaches PAOs use in educating and qualifying professional accountants. Representatives from PAOs in more than 25 countries participated in the workshop. Highlights will be posted on the IFAC website soon.
  • Jordan SMO Workshop
    In cooperation with the Jordanian Association of Certified Public Accountants and the World Bank Group’s Global Governance Practice, IFAC organized an SMO workshop in Sweimeh, Jordan in January 2017 focused on regional issues impacting the profession. Key takeaways >>
  • Inter-American Association Workshop
    To promote quality assurance systems implementation and prepare reviewers in the Latin America region, IFAC staff participated in a session of the Inter-American Association’s Train the Trainers workshop in October 2016. The workshop was a follow-up to the IFAC workshop in Costa Rica in early 2016, which uncovered some of the regional challenges for quality assurance systems. Read more in Spanish>>
  • ASEAN Council
    The 122nd ASEAN Federation of Accountants Council meeting in Singapore included presentations from IFAC staff on the compliance program’s work plan, the published member and country profiles, and the new, enhanced CARE framework. Read more >>
  • Costa Rica SMO Workshop
    More than 30 representatives from 17 Central and South American and Caribbean PAOs discussed regional issues affecting the profession during a workshop focused on IFAC’s Statement of Membership Obligations, held in cooperation with the Colegio de Contadores Públicos de Costa Rica in February 2016. Read more>>
Supporting Capacity Building
  • IFAC Capacity Building Program
    Projects under the IFAC Capacity Building Program, with funding from the UK Department for International Development, are currently underway in Ghana, Kyrgyzstan, Nigeria, Rwanda, Uganda, Zimbabwe, and regionally in Africa. Each project targets a specific development area based on the needs of the national PAO(s), such as accountancy education or public sector accountancy capacity.
  • MOSAIC Steering Committee Webinar
    The MOSAIC Steering Committee met in April 2017 to advance the Foundations Project—an initiative of the IFAC Capacity Building Program with funding from the UK Department for International Development to build foundational accountancy skills in the public and private sectors in emerging economies. A competency framework was developed under the project, which will be field tested through an upcoming project in Rwanda; development of additional support tools is planned for the future. The Steering Committee also considered a potential initiative to build accountancy capacity in fragile states.
Upcoming Dates:

June 2017: ICAC Conference, Guyana

July 2017: SMO Workshop, Vietnam

July 2017: Compliance Advisory Panel Meeting, Vietnam

October 2017: MOSIAC, Compliance Advisory Panel, and PAO Development Committee Meetings, New York

October 2017: AIC Conference, Peru

November 2017: IFAC Council, Belgium

Resources:
IFAC Quality & Development Team

The IFAC Quality & Development Team supports IFAC member organizations’ efforts to adopt and implement international standards (thus improving SMO fulfillment) and build the capacity of the global accountancy profession.

The team manages the Member Compliance Program and the membership admission process, PAO Capacity Building Program, including the PAO Development Committee, Accountability. Now. and sustainable accountancy development efforts. The Member Compliance Program is overseen by the Compliance Advisory Panel and the Public Interest Oversight Board as one of IFAC’s public interest activities.

Questions: compliance@ifac.org.

IPSASB Staff Podcast on Materiality

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In this podcast, IPSASB Deputy Director Ross Smith and Principal Paul Mason discuss how materiality can be applied when preparing financial statements. The podcast summarizes the accounting requirements for materiality in International Public Sector Accounting Standards.

An accompanying Staff Questions and Answers document is also available.

Meeting Highlights Listen & Subscribe in iTunes
IPSASB Staff Podcast on Materiality
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