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Accountability. Now.

Enhancing Public Financial Management

in the Public Sector

Vincent Tophoff

International Federation of Accountants (IFAC)

ACCA Global Public Sector Conference

Johannesburg, South Africa

February 14-15, 2017

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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

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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

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Citizens’ raised expectations +

Pressure on national budgets +

Additional demands as a result of GFC =

Greater need for sound PFM

The Bar Continues to Rise

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Accountability. Now.

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• Good public sector

governance

• Sound public financial

management (PFM)

• High-quality decision-useful

information

• “Built in” not “bolt on”

An Integrated Approach

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Good Governance in the Public Sector:

An International Framework

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• 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

Sound Public Financial Reporting

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

ACCOUNTABILITY. NOW.

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Accountability. Now.

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• 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

A Global Campaign

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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

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“PFM reform is the ultimate public

interest issue for the accountancy

profession”

Warren Allen, IFAC Past President

The Role of the Accountancy Profession

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The Accountancy Profession—Actions at the

Global, Regional and National Level

• Global – 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

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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

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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

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• 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

At the Regional Level—PFM as Strategic Objective Examples

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• 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

12-14, 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

At the Regional Level—Caribbean Leadership Event Examples

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• 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

At the Regional Level—PFM as Strategic Objective Examples

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… 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

At the National Level—Role of Professional

Accountancy Organizations

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Public Sector Capacity Building

Understanding the Need—Africa as Example

IFAC Member

Bodies

IFAC Associates

PAO established

No PAO

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GHANA

Total number of civil servants 478,566

ICAG membership working in the public sector 1,115

0.2%

Public Sector Capacity Building

Understanding the Need—Africa as Example

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%

UGANDA

Total number of civil servants 76,939

ICPAU membership working in the public sector 517

0.7%

* Statistics as of 2013

Uganda National Budget Framework Paper

Ghana Ministry of Finance – The 2013 Budget Statement and Economic Policy of the Government

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Are you?

ACCOUNTABILITY. NOW.

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• 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!

How to Get Involved?

ACCOUNTABILITY. NOW.