1. Chart of bookkeeping accounts and reporting in public sector
REPUBLIC OF MOLDOVA
MINISTRY OF FINANCE
Chart of bookkeeping accounts and reporting in public sector
Meeting of a topical group for accounting and reporting in public sector
23-25 of October 2019, Moscow 1

2. Public finance management development strategy in 2013-2020
Accounting Reform
Public finance management development strategy in
Public finance and budgetary-tax liability law
Unified Chart of Accounts for public sector
Economic classification integrated with the unified chart of accounts for public sector (drafted in accordance with GFS 2001 standards) 2

3. Chart of accounts coverage
Budget execution accounting
State budget
State social security budget
Compulsory health insurance funds
Local budgets
Accounting in budgetary units/institutions (accrual method)

4. Chart of accounts structure
1 – Revenues 2 – Expenses 3 – Non-financial assets 4 - Financial assets 5 – Debts 6 – Funds transferred / received between accounts 7 – Results 8 – Off-balance-sheet accounts

5. Chart of accounts structure
Class
Sub-class
Account group
Account
Sub-account level 1
Sub-account level 2
Chart of accounts
Title 1
Revenues 11
Taxes and dues
111
Taxes on income
1111
Personal income tax
11111
Taxes deducted from wages
111110

6. Chart of accounts integrated with economic budget classification
CoA
CoA
Classes 6,7,8
Classes 1,2,3,4,5

7. Budget classification structure
Key budget spending unit
Organizational
Institution
Type of institution
Main group
Functional
Group
Sub-Group
Program
Programs
Sub-program
Activity
Type
Category
Section
Economic
Article
Sub-article
Element
Budget level
Budget sub-level
Component
Sources
Sub-component
Origin of source
Donor
Total

8. Structure of budget classification integrated with chart of accounts
ORG1
ORG2
Organizational
ORG3
Main group
Functional
Group
Sub-Group
Program
Programs
Sub-program
Activity
Level
Sources
Sub-level
Component
Sub-component
Origin of source
Economic
classification
Unified chart of accounts
Donor

9. Comparison of chart of account with GFS 2001
RoM Chart of accounts
GFS 2001
1 – Revenues 2 – Expenses 3 – Non-financial assets 4 - Financial assets 5 – Debts 6 – Funds transferred / received between accounts 7 – Results 8 – Off-balance-sheet accounts
1 – Revenues 2 – Expenses 31 – Non-financial assets 32 - Financial assets 33 - Liabilities

10. Example of the IPSAS Chart of Accounts (PULSAR)
Comparison of the Chart of Accounts with the example of the IPSAS Chart of Accounts (PULSAR)
PM Chart of accounts
Example of the IPSAS Chart of Accounts (PULSAR)
1 – Revenues 2 – Expenses 3 – Non-financial assets 4 - Financial assets 5 – Debts 6 – Funds transferred / received between accounts 7 – Results 8 – Off-balance-sheet accounts
0 – Monetary funds outflows 1 – Current assets 2 – Non-current assets 3 – Net assets 4 – Current liabilities 5 – Non-current liabilities 6 - Revenue 7 – Expenses 8 – Costs (cost value) 9 – Monetary fund inflows F – Off-balance-sheet accounts

11. Some expert conclusions about difference between the present RoM accounting system and IPSAS
Accounting policies for assets, liabilities, revenue and expenses do not fully cover the requirements of IPSAS.
CoA is more developed than the accounting policy. It is necessary to improve correlation between CoA and methodological norms. When developing National Accounting Standards in the Public Sector, it will be necessary to significantly supplement the CoA.
Use of the same codes for cash method and accrual method accounting. Integration of EC and CoA differs from the international practices.
The present Chart of accounts and methodology contain certain elements of IPSAS, differences with the international standards are significant.

12. Some expert conclusions about difference between the present RoM accounting system and IPSAS
5. The content and structure of financial statements do not comply with IPSAS 1.
6. The present CoA and accounting methodology do not provide for building contracts accounting rules.
7. No correspondence between inventory accounting rules and IPSAS 12.
8. From the point of view of IPSAS, accounting rules for lease (IPSAS 13), investment property (IPSAS 16), and fixed assets (IPSAS 17) are not sufficiently detailed.
9. The principles of accounting for contingent liabilities and contingent assets (IPSAS 19) are not considered, the rules for accounting for the depreciation of assets are not sufficiently detailed (IPSAS 21.26).
10. No correspondence between intangible assets accounting rules and IPSAS 31. According to IPSAS they are not part of fixed assets, and are shown as a separate category.

13. REPUBLIC OF MOLDOVA MINISTRY OF FINANCE
THANK YOU FOR YOUR ATTENTION
State Treasury General Directorate
Methodology Section