Presentation is loading. Please wait.

Presentation is loading. Please wait.

Transition from Cash to Accrual Accounting by Governments Dr. Jesse Hughes, CPA, CIA, CGFM.

Similar presentations


Presentation on theme: "Transition from Cash to Accrual Accounting by Governments Dr. Jesse Hughes, CPA, CIA, CGFM."— Presentation transcript:

1 Transition from Cash to Accrual Accounting by Governments Dr. Jesse Hughes, CPA, CIA, CGFM

2 Suggested Work Plan Monitor application for IFAC membership Monitor application for IFAC membership Officially translate the IPSAS Officially translate the IPSAS Provide training for implementation of the work plan: Provide training for implementation of the work plan: –Develop training plan with an emphasis on training of the trainers –Work with training function to provide set of training material for program implementation –Work with universities to incorporate training on IPSAS in their degree programs –Coordinate with ACCA and CIPFA to determine if there can be linkage to certification programs

3 Suggested Work Plan (continued) Identify all government entities Identify all government entities Define which entities are Government Business Entities (GBEs) using following criteria: Define which entities are Government Business Entities (GBEs) using following criteria: –Has power to contract in own name –Is assigned financial and operational authority to carry on a business –Sells goods and services to other entities at a profit or full cost recovery –Not reliant on continuing government funding to be a going concern –Is controlled by a public sector entity as defined in IPSAS 6

4 Suggested Work Plan (continued) Review and assess the following for each GBE: Review and assess the following for each GBE: –Determine degree of compliance with IASs by review of Auditor’s Opinion and Management Letter from external auditor –Correct deficiencies noted in order to obtain an unqualified auditor’s opinion –Prepare Consolidated Financial Statements for all GBEs

5 Suggested Work Plan (continued) Review and assess the following requirements per Part 1 of the Cash Basis IPSAS for each governmental entity other than a GBE Review and assess the following requirements per Part 1 of the Cash Basis IPSAS for each governmental entity other than a GBE –Prepare Cash Receipts and Payments Statement for own revenues –Contact donors to obtain third party settlements and include in Cash Receipts and Payments Statement –Prepare Consolidated Cash Receipts and Payments Statement –Incorporate disclosure requirements for recipients of external assistance (IPSAS ED)

6 Suggested Work Plan (continued) Review and assess additional disclosures as encouraged by Part 2 of the Cash Basis IPSAS for each governmental entity other than a GBE: Review and assess additional disclosures as encouraged by Part 2 of the Cash Basis IPSAS for each governmental entity other than a GBE: –Budget to Actual Comparison (Draft ED) –Cash Flow Statement in format prescribed by IPSAS 2 –Investments in Associates as Defined in IPSAS 7 –Interests in Joint Ventures as Defined in IPSAS 8 –Value of Inventories as Defined in IPSAS 12

7 Suggested Work Plan (continued) –Value of Leases as Defined in IPSAS 13 –Value of Financial Instruments (includes all financial assets and financial liabilities) as defined in IPSAS 15 –Value of Investment Property as Defined in IPSAS 16 –Value of Provisions as Defined in IPSAS 19 –Amount of Administered Transactions as an agent –Related Parties as Defined in IPSAS 20 –Value of Property, Plant, and Equipment as Defined in IPSAS 17

8 Suggested Work Plan (continued) Implement system of accrual accounting by adopting all IPSASs in effect, and prepare Consolidated Financial Statements as prescribed in IPSAS 6 Implement system of accrual accounting by adopting all IPSASs in effect, and prepare Consolidated Financial Statements as prescribed in IPSAS 6 Extract data from accounting system for presentation in the statistical reporting system prescribed by the GFS Manual Extract data from accounting system for presentation in the statistical reporting system prescribed by the GFS Manual

9 Suggested Work Plan (continued) Review organizational structure to determine changes that might be necessary. Particularly important would be consideration of an Accounting organization headed by a Chief Accountant. Functions for such a department are: Review organizational structure to determine changes that might be necessary. Particularly important would be consideration of an Accounting organization headed by a Chief Accountant. Functions for such a department are: –Maintain Accounting Policy and Procedures Manual –Provide Quality Assurance program for financial statements –Maintain library of pertinent accounting standards –Coordinate training needs with training function

10 Suggested Work Plan (continued) Work with line ministries to improve the Corruption Perception Index through implementation of good internal control procedures Work with line ministries to improve the Corruption Perception Index through implementation of good internal control procedures Design and implement an integrated government financial management system Design and implement an integrated government financial management system Change laws and regulations as necessary to implement this work plan Change laws and regulations as necessary to implement this work plan Coordinate with internal and external auditors on work plan Coordinate with internal and external auditors on work plan


Download ppt "Transition from Cash to Accrual Accounting by Governments Dr. Jesse Hughes, CPA, CIA, CGFM."

Similar presentations


Ads by Google