8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

1/10

Dr. Jesse Hughes, CPA, COA, CGFM

Professor Emeritus

Old Dominion University

Norfolk, Virginia, USA

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

2/10

Cash

Budget

Sustainability

Performance

IPSAS Framework

2

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

3/10

Statement

of CashFlows

Budget to

ActualStatement

Financial

PositionStatement

Financial

PerformanceStatement

Consolidated Statements

BudgetaryEntities

Government

BusinessEnterprises

All

OtherEntities

Whole of Government

3

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

4/10

Steps to Implementing Part 1 of

the Cash Reporting IPSAS1. Separately identify the budgetary entities, the Government

Business Enterprises (GBEs), and all other governmententities.

2. Perform the following for budgetary entities:a. Establish good cash accountability by implementing a Treasury

Single Account and preparing a Cash Receipts and PaymentsStatement with appropriate footnotes.

b. Maintain good fiscal discipline by publishing an annual budgetand preparing a Budget to Actual Comparative Statement.

c. Prepare a Management Discussion and Analysis (MD&A) toexplain the financial statements. (Not required by IPSAS.)

3. Perform the above for GBEs and all other government entities.4. Prepare consolidated whole of government financial

statements.

4

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

5/10

Steps to Implementing the Accrual

IPSAS1. For budgetary entities, progressively implement Part 2 of the Cash

Reporting IPSAS.a. Ensure that all liabilities are identified and reported in a Schedule of

Liabilities.

b. Ensure that all assets are identified and reported in a Schedule ofAssets.c. Prepare an Opening Statement of Financial Position to include all

assets and liabilities.d. Implement the Accrual IPSAS along with a MD&A.

2. Perform the above for GBEs and all other government entities.

3. Prepare consolidated whole of government financial statements.

Go Slow!! It may take 10 years or more.

5

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

6/10

Current IPSAS Board Efforts Reviewing the Cash Reporting IPSAS

Preparing a Conceptual Framework

Preparing Consultative Papers on Key Characteristics,Performance Measures, and Presentation Formats

Approving an IPSAS on Long-Term FiscalSustainability

6

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

7/10

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

8/10

Paris, France

8-9 March 2012

oecd.org/document/29/0.3746.en_2

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

9/10

Public Sector Critical Projects in progress (Andreas

Bergman, IPSASB) Long-Term Sustainability of Public Finances - ED of

Recommended Practice final planned 2012

Public Sector Combinations - Consultation Paper June 2012

Cash Basis Review - Task Force reported: May 2010; Reviewpending funding

Financial Statement Discussion and Analysis ED plannednext week

Reporting Service Performance

Responses to CP due April15, 2012

Alignment of IPSASs and GFS CP June 2012

First Time Adoption CP/ED 2012

9

8/2/2019 Improvements to International Public Sector Accounting Standard (IPSAS) on Cash Reporting

10/10

GFSM 2001 Update

(Sage De Clerck), IMF Highlighted the need to continue with efforts to

harmonize statistical guidelines and public sectoraccounting reforms

IMF/IPSASB Alignment Taskforce are working on:

GFSM appendix on accounting and statistical linkages

Update of matrix of remaining differences

Model Chart of Accounts to illustrate how to harmonizereporting requirements, following a building blockapproach

10