Accountability. Now. Enhancing - PowerPoint Presentation

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Accountability. Now.Enhancing Public Financial Management in the Public Sector

Vincent Tophoff

International Federation of Accountants (IFAC)

GIFT General Stewards Meeting

Mexico City, Mexico

March 8-9

,

2017

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IFAC’s FocusGlobal organization of the accountancy profession175 member bodies and associates in 130 countries2.5 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 DoesEstablish & 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 governanceSound 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 PFMAccrual reporting is the benchmarkIncreasing IPSAS adoptionAccrual 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 ZealandOrganisation for Economic Co-operation and Development (OECD)Panama United Nations System Peru

Government debt fears spook global markets 

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:

C

ivil

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 LevelGlobalIFAC and its Accountability.

Now

.

campaign / PAODCInternational Public Sector Accounting Standards Board (IPSASB)

International Organization of Supreme Audit Institutions (INTOSAI)

Regional

Regional Organizations and Accountancy Groupings in the private and public sectorsNational

Professional Accountancy Organizations

Accountants General & Supreme Audit

Institutions

Individual professional accountants in the public

sector

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Campaign Activities: At the Global LevelBuilding a global coalitionRaising awareness – reinforcing the benefits of sound public financial reportingBringing 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. IndexExamplesOn IPSAS adoption

globally

Based

on the IPSAS adoption surveyIndicator 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 BankRaising awareness and building partnerships in Francophone AfricaPublic Financial Management—Financial Reporting for Results, Dakar, Senegal, October 28-30, 2015PFM 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 CaribbeanShare

experiences about opportunities &

challenges, costs & benefits of regional public financial accounting and reporting reforms

At the Regional Level—Caribbean

L

eadership Event

Examples

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Confederation of Asian Pacific Accountants (CAPA)Public Sector Financial Management CommitteeConferences 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 OPPORTUNITYFacilitate 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 BuildingUnderstanding 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

m

embership 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%

UGANDATotal number of civil servants76,939ICPAU membership working in the public sector5170.7%* Statistics as of 2013Uganda National Budget Framework PaperGhana 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. webpageDownload 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

.