The reform of public sector accounting - The role of the accountant - - PowerPoint PPT Presentation

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CIGAR Conference and PhD Seminar 2017 Oporto, 8 June 2017 The reform of public sector accounting - The role of the accountant - Andr Maralo, Coordinator Agenda 1. Initial remarks 2. PFM Reform players 3. Institutions and PFM Reform 4.

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André Marçalo, Coordinator

CIGAR Conference and PhD Seminar 2017

Oporto, 8 June 2017

The reform of public sector accounting

The role of the accountant -

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Agenda

1. Initial remarks
2. PFM Reform players
3. Institutions and PFM Reform
4. Agents and PFM Reform
5. Information producers (accountants) and PFM

Reform

6. Final remarks

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1. Initial remarks

Kick-off with some random images…

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1. Initial remarks

§ Its is essential that the professionals dialogue between themselves § Technical level

Accountants

Economists

Law Experts

…

§ Different skills / different responsibilities

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2. PFM Reform players

§ PFM is demanding in different ways to the different players Institutions Agents

Law

Ministries

Public Departments

Political decisions makers

Information users

Information producers (accountants)

Communication

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2. PFM Reform players

§ Institutions

Adaptation to the new challenges

Change management

Capacitation and output improvement

§ Agents

Powerhouse of the reform

Resistance to change must be defeated

Benefit to the agents: better tools, better work

§ Communication

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3. Institutions and PFM Reform

§ Law

Statutory changes do not guarantee success of the reform

§ Ministries

Line Ministries will have to absorb the reform

Finance Ministry Central accounting and reporting function Central financial management information system New management control tools

§ Public Departments (reporting entities)

Training & IT Systems

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4. Agents and PFM Reform

§ Political decision makers

Political ownership

Awareness to the benefits of the reform for the respective functions

§ Information users

Department directors should manage the respective resources…

…and be held accountable for the respective decisions

§ Information producers (accountants)

Accountants are the basis of the pyramid

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5. Information producers (accountants) and PFM Reform

§ PFM has to be built on sound foundations § There is no good management without good information § Characteristics of good information

Relevance

Reliability

Understandability

Timeliness

Comparability

Verifiability

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5. Information producers (accountants) and PFM Reform

§ The production of such information demands the participation of skilled professionals: accountants § Accountants must be available at/to the public entities, so that specific capacities are developed:

Public finance

Internal control

Accounting and reporting

Performance management

Risk management

Government finance statistics

Procurement

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5. Information producers (accountants) and PFM Reform

§ How?

Internal resources vs. external resources (pros and cons)

§ Legal framework

Public entities must have public accountants

Specific training

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6. Final remarks

§ Each stakeholder must deliver on the respective task § As a foundation of the PFM infrastructure, accounting should deserve top priority for implementation § Accountants are at the core of the PFM reform… § …but are not alone: there are other responsible actors and other success factors

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