1. UN IPSAS Project Pedro Guazo,
5/10/2018
UN IPSAS Project
Pedro Guazo,
Director, Accounts Division and Acting Deputy Controller
United Nations

2. IPSAS: What, Why, When 2 2

3. UNSAS – IPSAS Differences
However, for Budgetary issues we remain UNSAS, creating 2 worlds, the Budgetary World and the Financial Statements World.

4. Challenge: Much “more” than UNSAS

5. Why IPSAS - The benefits (A/60/846 Add.3)5

6. IPSAS: The Challenges 6 6

7. IPSAS: The biggest challenges
Expenditure based on delivery
Goods
Services
Delivery Principle
More assets than before
Physical verification
Valuation
Impairment
Asset Accounting

8. UNSAS vs. IPSAS: Expense recognition
Example: Recognition of expense for 2-year services contract
Issue of purchase order
UNSAS (current) Y1 Y2 Y3 Y4 Y5 Y6
Expenditure (obligation) recognized
$ 6,000 - - - - -
Period of Performance
UNSAS: Expenditure recognized at the issue of purchase order (obligation)
IPSAS Y1 Y2 Y3 Y4 Y5 Y6
Expense recognized
$ 3,000
$ 3,000
Period of Performance
IPSAS: Expense recognized as services are delivered.

9. UNSAS vs. IPSAS: Asset accounting-
$ 60,000
No asset recognized; cost of vehicle recorded as expenditures Y6 Y5 Y4 Y3 Y2 Y1
UNSAS (current)
$10,000
$60,000
Annual depreciation expense
IPSAS
Full cost charged on purchase
Useful Life of the Vehicle
UNSAS: Expenditure recorded when purchase order is issued.
IPSAS: Cost of the vehicle is spread-out over 6 years of useful life as depreciation.
Example: Recognition of Asset and Depreciation
Asset recognition
$10,000

10. UNSAS vs. IPSAS: Liability recognition
$ 48,000 -
No liability recognized; expenditure recognized when staff leaves the Organization Y6 Y5 Y4 Y3 Y2 Y1
UNSAS
Period of Performance after staff becomes eligible
UNSAS: Expenditure is recognized upon separation.
Example: Recognition of liability for staff repatriation benefit
$ 39,964*
Liability recognized when staff becomes eligible, using actuarial assumptions Y6 Y5 Y4 Y3 Y2 Y1
IPSAS
Period of Performance after staff becomes eligible
IPSAS: Liability is recognized when staff has earned the benefit; *$48,000 discounted at 5.5% for 6yrs

11. PK Financial Statement Highlights
Management Committee
14 November 2014

12. Revenues & Troops by mission
Total $8,011.49M
Mission
# Troops
Overall Percentage
UNFICYP
217 1%
UNDOF
183
UNIFIL
2,368
10%
MINURSO
0.9%
UNMIK
363
1.5%
MONUSCO
5,311
22%
UNMIL
2,299
UNOCI
2,179 9%
MINUSTAH
2,915
12%
UNAMID
6,372
27%
UNSOA
679 3%
UNISFA
176
UNMISS
722
MINUSMA 0%
MINUSCA
Total
24,001
100%
* As at 30 June Figures in millions of USD

13. Expenses by category Total $7,905.68M
* “Other Operating Expenses” covers: Acquisitions, bank charges, communications utilities, contracted services, credits to MS for staff assessments, doubtful debt expenses, fees, fellowships/grants/other, insurance, joint activities, maintenance expenses, net foreign exchange gains/losses, other, rent, rentals, shared services, shipping/freight services, stationary and office supplies, subscriptions and publications, tax reimbursements, UNDP cost recovery, utilities, and write-offs other than A/R

14. Assets - Liabilities/Assets
Mission
Assets
Liabilities
Assets - Liabilities/Assets
UNFYCIP
$33M
$11M
67%
UNDOF
$88M
$9M
90%
UNIFIL
$392M
$182M
53%
MINURSO
$68M
$20M
71%
UNMIK
$41M
$32M
23%
MONUSCO
$599M
$393M
34%
UNMIL
$174M
$85M
51%
UNOCI
$237M
$97M
59%
MINUSTAH
$292M
$110M
62%
UNAMID
$929M
$242M
74%
UNSOA
$362M
$115M
68%
UNISFA
$194M
$50M
UNMISS
$441M
$186M
58%
MINUSMA
$313M
$133M
MINUSCA
$16M
$62M
-286%
Sub Total
$4179M
$1727M
Employee Benefits Funds
$1369M
---
Total
$3095M
26%
* As at 30 June Figures in millions of USD
5/10/2018
ipsas.un.org

15. Financial Indicators * As at 30 June 2014. Figures in millions of USD
Cash and cash equivalents
563.43
Investments
741.55
Total monthly average budgeted expenditure
658.8
Months of operations with cash available
1.98
Cash and cash equivalents
563.43
Investments
741.55
Assessed Contributions receivable
693.32
Voluntary contributions receivable
7.35
Total monthly average budgeted expenditure
Months of operations with cash available & contributions receivable
3.04
Cost of goods sold and consumed
168.18
Opening inventory 1 July 2013
377.32
Total inventory at 30 June 2014
389.13
Average Inventories
383.22
Average days to sell and consume inventories
831.71
* As at 30 June Figures in millions of USD
5/10/2018
ipsas.un.org

16. Budget performance
5/10/2018

17. IPSAS sustainability

18. IPSAS Project: Current Context
Current phase: Post Implementation => Launch of sustainability activities.
Aim: Ensure IPSAS is embedded in operations and is on a sustainable footing before the project is institutionalized.
End-state vision articulated: IPSAS sustainability end-state vision presents a view of IPSAS when sustainability is achieved.
Five pillar sustainability plan: Plan of activities to enable the vision has been documented and approved by the Management Committee and presented to the General Assembly.

19. IPSAS sustainability plan
Five pillar plan to enable the end-state vision of IPSAS was approved
A. Manage the benefits of
IPSAS
B. Strengthen Internal Controls
C. Manage the Regulatory Framework
D. Automate FS & manage changes to systems/processes
d enhancements
E. Deploy training and skills development
Ongoing work towards IPSAS-compliant accounting and reporting A B C D E
Monthly reporting tool kit to support data integrity
Deployment of the SIC based on COSO
Training on the SIC
On-going monitoring and internal controls testing.
Manage changes to IPSAS policy framework
Impact assessments of changes to IPSAS
Updates to FRR, and IPSAS guidance documents and SOPs
Well articulated skills strategy to support IPSAS
Update IPSAS training
products: CBTs, ILTs
Support for CPE for staff accountants
Formal certification for impacted staff
Benefits realisation plan with KPIs and benefits owners
Benefits tracking tool
Deployment timeline
Benefits training for managers
Automation of the IPSAS financial statements
Clarity of Book of Record with ERP deployment & transition arrangement plan
Ongoing update of systems and processes for changes to IPSASs 19