1. Katarína Kaszasová FCCA
Governmental Financial Reporting Public Sector Accounting Reform in Slovakia
Katarína Kaszasová FCCA
Ministry of Finance of the Slovak Republic
World Congress of Accountants
Istanbul, November 2006

2. Agenda Why Slovakia introduced public sector accounting reform
What are main components of reform and their status of realization
What we have learned and what we need to solve in forthcoming years

3. Public Finance Management Reform
To strengthen the institutional capacity for budgeting, expenditure management and the financial management of government operations
Program budgeting
Multi-annual budgeting
State Treasury
Agency for Debt and Liquidity Management

4. Public Finance Management Reform
The present system of public sector accounting provides neither the full extent of needed financial information, nor financial information with following qualities:
relevant, reliable, comparable,
timely,
understandable.

5. Public Sector Accounting Reform Objective
Public Sector Accounting is the information system that records, analyses, classifies, summarizes and communicates public sector entity financial and economic events, and their impacts, in terms of both:
The provision of information required by management and senior executives for planning, organizing and control, and
The preparation and provision of financial statements and fiscal reports under specific accounting and reporting standards for external users

6. Public Sector Accounting Reform Components
New accounting and reporting standards
“MoF must produce, in line with new definition of public finance accounting, specific formats and content for several public finance accounting and reporting methodologies, consistent with the standards and trend in other countries.”
Implementation of IPSAS into national accounting standards
Introduction of consolidation procedures
Introduction of conversion procedures

7. Public Sector Accounting Reform Components
System support to implementation
“MoF must re-specify the basic operability criteria of, and its access to, public finance accounting systems to promote functionality of public finance accounting and reporting and to be consistent with the standards and trend in other countries.”
System of the State Treasury
New module for consolidation
Financial and administration centers for local government

8. Public Sector Accounting Reform Components
Training of accountants
“MoF should develop a clear and comprehensive vision and strategy how public finance accountants will be able to obtain appropriate levels of training and experience to meet the needs of users of public finance accounting information.”
Series of trainings for 6,500 public accountants
Cooperation with universities and professional associations
Communication

9. Public Sector Accounting Reform Timetable
Key activities
Project management
New standards preparation
Trainings
System support pilot projects
Adoption of new standards and new systems
First consolidated financial statements
April 2010

10. Lessons learned Preconditions for success
Recognition that accrual accounting is part of reform process
Broad consultation and acceptance
Adoption/development of accounting standards
Participation of accountancy profession
Existence of robust audit process

11. Information and contacts
Ministry of Finance of the Slovak Republic
Štefanovičova 5
P.O.Box 82
Bratislava 15
Slovak Republic