Proposed Review and Update of the PEMPAL Paper  INTEGRATION OF THE BUDGET CLASSIFICATION AND CHART OF ACCOUNTS  Mark Silins

Background Report emanated from the first working group established in TCOP on CoA Reform Membership of the group included : Azerbaijan, Georgia, Moldova, Russia, Ukraine Following a number of meetings, particularly in Kiev in 2013, a decision was made to prepare a paper to discuss common issues and experiences regarding integrating budget classifications and charts of accounts This was seen as a very specific challenge and issue for transition economies inparticular - a tradition of separate Budget Classifications and CoAs The move to more integrated PFM and FMIS The paper was finalized in 2014, has been used as a reference document in many countries, including outside PEMPAL – Poland is a recent example

Why Revisit the Paper? It has been a useful knowledge product regarding the creation of a single unique economic segment However, more recent country experiences show that some questions remain unanswered by the paper What are the key questions? What issues have countries experienced? What issues should be addressed in an expanded paper?

Possible Areas of Coverage for an Expanded Paper Issues with accrual and how the CoA can be expanded overtime to support accrual Update for GFSM2014 changes including explain why mirroring GFSM completely may not be a sensible idea Discuss the challenges in development of the other segments in the CoA in detail – a chapter on each? Supporting Cash based budgeting and accrual accounting simultaneously Budget control and the CoA How a CoA can support Consolidation and Elimination issues Linking CoA to other systems – eg procurement, assets register, revenue systems, etc. More detailed CoA does not mean more detailed recording – the power of the relational database CoA and ICT CoA and a Treasury Single Account Developing a CoA Manual and training products Annexes which include examples of good practice structures Are there others?

Consideration/Discussion/Comment Should we redevelop this document in PEMPAL? What should be included in the new document? How do we redevelop this document – establish a small working group?