Accountability. Now. Enhancing Public Financial Management in the Public Sector Vincent Tophoff International Federation of Accountants (IFAC) GIFT General Stewards Meeting Mexico City, Mexico March 8-9, 2017

IFAC’s Focus Global organization of the accountancy profession 175 member bodies and associates in 130 countries 2.5 million professional accountants in public practice, commerce, industry, financial services, the public sector, education, and the not-for-profit sector Public interest focused

What IFAC Does Establish & promote adherence to high quality professional standards Further adoption and implementation of standards Support global development of accountancy profession Provide a global voice and promotes the value of professional accountants worldwide Help its members support PAIBs and small and medium practices

The Bar Continues to Rise Citizens’ raised expectations + Pressure on national budgets Additional demands as a result of GFC = Greater need for sound PFM

Accountability. Now.

An Integrated Approach Good public sector governance Sound public financial management (PFM) High-quality decision-useful information “Built in” not “bolt on”

Good Governance in the Public Sector: An International Framework

Sound Public Financial Reporting ACCOUNTABILITY. NOW. Sound Public Financial Reporting High-quality accrual-based financial information is the cornerstone of sound PFM Accrual reporting is the benchmark Increasing IPSAS adoption Accrual budgeting is gaining support Austria Russia Brazil Slovakia Chile South Africa Columbia Spain Costa Rica Switzerland Estonia Thailand Indonesia European Commission (for their own financial statements) Kenya North Atlantic Treaty Organization (NATO) New Zealand Organisation for Economic Co-operation and Development (OECD) Panama United Nations System Peru Government debt fears spook global markets 

Accountability. Now.

A Global Campaign A global campaign for enhanced public financial reporting Supported by a broad coalition To: Raise awareness Facilitate partnerships Support capacity building Can be replicated at the regional and national level

Who Is Involved? Initiative of IFAC Supported by a broad coalition: Civil society organizations and major international bodies, Accountancy profession, including IFAC, the Accounting Firms, Organisation for Economic Co-operation & Development (OECD), Global Initiative for Fiscal Transparency (GIFT), comprising International Budget Partnership, World Bank, and IMF

The Role of the Accountancy Profession “PFM reform is the ultimate public interest issue for the accountancy profession” Warren Allen, IFAC Past President

The Accountancy Profession—Actions at the Global, Regional and National Level IFAC and its Accountability. Now. campaign / PAODC International Public Sector Accounting Standards Board (IPSASB) International Organization of Supreme Audit Institutions (INTOSAI) Regional Regional Organizations and Accountancy Groupings in the private and public sectors National Professional Accountancy Organizations Accountants General & Supreme Audit Institutions Individual professional accountants in the public sector

Campaign Activities: At the Global Level Building a global coalition Raising awareness – reinforcing the benefits of sound public financial reporting Bringing together key actors in the public sector community to take action Building capacity at a country level – through engagement with local accountancy organizations

At the Global Level—Accountability. Now. Index Examples On IPSAS adoption globally Based on the IPSAS adoption survey Indicator of quality of public sector financial information

At the Regional Level—PFM as Strategic Objective Examples Pan African Federation of Accountants (PAFA) Partnered with IFAC, FIDEF, World Bank, and African Development Bank Raising awareness and building partnerships in Francophone Africa Public Financial Management—Financial Reporting for Results, Dakar, Senegal, October 28-30, 2015 PFM Event for Francophone African Countries, October 27–28, 2016, Antananarivo, Madagascar Exploring similar event for Anglophone Africa, as well as establishing PFM technical capacity

At the Regional Level—Caribbean Leadership Event Examples Institute of Chartered Accountants of the Caribbean (ICAC) Partnered with IFAC & World Bank, supported by government of the Bahamas: Strengthening Public Financial Reporting and Accountability, April 12-14, 2016 Nassau, Bahamas Accountants General, Auditors General, Professional Accountancy Organizations from the Caribbean Share experiences about opportunities & challenges, costs & benefits of regional public financial accounting and reporting reforms

At the Regional Level—PFM as Strategic Objective Examples Confederation of Asian Pacific Accountants (CAPA) Public Sector Financial Management Committee Conferences and Roundtables, including Financial Reform for Economic Development Forum, Malaysiam May 17-18, 2016 Improving Financial Management in the Public Sector—The Eight Key Elements of PFM Success

At the National Level—Role of Professional Accountancy Organizations … both a public interest OBLIGATION and an OPPORTUNITY Facilitate adoption and implementation Advocate for transparency and accountability on behalf of citizens Act as trusted advisor to government Build capacity to sustain PFM reforms

Public Sector Capacity Building Understanding the Need—Africa as Example IFAC Member Bodies IFAC Associates PAO established No PAO

Public Sector Capacity Building Understanding the Need—Africa as Example GHANA Total number of civil servants 478,566 ICAG membership working in the public sector 1,115 0.2% UGANDA Total number of civil servants 76,939 ICPAU membership working in the public sector 517 0.7% IFAC MEMBERSHIP Total membership of IFAC Members in Africa–Middle East region 126,000 Total membership of IFAC Members in Africa–Middle East region working in the public sector 21,086 17% * Statistics as of 2013 Uganda National Budget Framework Paper Ghana Ministry of Finance – The 2013 Budget Statement and Economic Policy of the Government

ACCOUNTABILITY. NOW. Are you?

How to Get Involved? Visit the Accountability. Now. webpage Download the Accountability. Now. brochure Sign up for the Accountability. Now. Partner Briefing Contact Accountability. Now. staff with your ideas and suggestions!