Fostering Financial Accountability The World Bank Elizabeth Adu Director, Operational Services Latin America and the Caribbean Region World Bank

CReCER : Propelling Accounting and Accountability in the Public and Private Sectors Accounting Standards 2012 Mexico El Salvador Brazil Panama Argentina Nicaragua 2

Is essential for the implementation of public policies and the achievement of development results Supports strategic allocation of resources and efficient service delivery Enables:  Planning and executing the budget in line with government priorities  Aggregate fiscal discipline  Management of fiscal risks Good Public Financial Management (PFM) … 3

PEFA data for 26 countries : Accounting and Auditing performance is lagging PFM Performance in LAC (A = highest score, D = lowest) * Other indicators relate to budget credibility, comprehensiveness, transparency and execution. 4

World Bank Support to PFM in LAC Guatemala SAI Guatemala SAI Dominican Republic SAI Dominican Republic SAI Brazil SAI Brazil SAI Paraguay SAI Paraguay SAI OLACEFS Regional SAI OLACEFS Regional SAI CAROSAI Regional SAI CAROSAI Regional SAI OCCEFS Regional SAI OCCEFS Regional SAI Mexico SAI, Sec. of Public Admin Treasury, MOF Mexico SAI, Sec. of Public Admin Treasury, MOF Panama MOF, Treasury Panama MOF, Treasury Colombia Standard Setter Colombia Standard Setter Jamaica Parliamentary Oversight Jamaica Parliamentary Oversight Costa Rica PEFA Costa Rica PEFA Uruguay PEFA MOF Uruguay PEFA MOF Honduras Municipal PEFA Honduras Municipal PEFA The Bank continues to support partner countries in developing robust PFM systems through institutional support Haiti SAI, MOF Haiti SAI, MOF 5 5

CReCER Knowledge and Learning Activities Support PFM Development Accountability in Public Expenditures in LAC (2009) Translation of 2011 IPSAS Handbook and IPSAS Study 14 CReCER Regional Dialogue Series : COSO Application in the Public sector (September 2012) IPSAS Train the Trainers seminar (planned) 6

Good Accounting and Auditing depends on the Public and Private Sectors working together Strong Accounting Profession Establishing legal and institutional framework for accounting and auditing Education requirements and curriculum Professional standards and Code of Ethics Public Private Ensuring Compliance Public Private Setting accounting and auditing standards A&A oversight of regulated entities Quality assurance arrangements Disciplinary regime for the profession 7

Accountancy Profession: Serving the Needs of the Private and Public sectors Private Sector A & A Private Sector A & A Public Sector A & A Public Sector A & A IPSAS are modeled on IFRS ISSAIs (financial audits) are based on ISAs Many State-owned Enterprises apply IFRS Accounting Standards Accounting & Audit Profession 8

CReCER is a Model for the World Other Regions are following CReCER’s lead:   South Central and South East Europe: Road to Europe: Program of Accounting Reform and Institutional Strengthening (RePARIS)   Supports improved corporate financial reporting to facilitate potential integration into (or harmonization with) the European Union   Other CReCER-like initiatives contemplated for the South Caucasus countries, East Asia Pacific and Middle East/North Africa 9