1. 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

2. 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

3. 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

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

5. Accountability. Now.

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

7. Good Governance in the Public Sector: An International Framework

8. 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 

9. Accountability. Now.

10. 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

17. 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 , 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

18. 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

19. 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

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

21. 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

22. ACCOUNTABILITY. NOW.
Are you?

23. 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!