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Page 1
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
Page 2
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
Page 3
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
Page 4
Citizens’ raised expectations +
Pressure on national budgets +
Additional demands as a result of GFC =
Greater need for sound PFM
The Bar Continues to Rise
Page 5
Accountability. Now.
Page 6
• Good public sector
governance
• Sound public financial
management (PFM)
• High-quality decision-useful
information
• “Built in” not “bolt on”
An Integrated Approach
Page 7
Good Governance in the Public Sector:
An International Framework
Page 8
• 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.
Page 9
Accountability. Now.
Page 10
• 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
Page 11
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
Page 12
“PFM reform is the ultimate public
interest issue for the accountancy
profession”
Warren Allen, IFAC Past President
The Role of the Accountancy Profession
Page 13
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
Page 14
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
Page 15
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
Page 16
• 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
Page 17
• 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
Page 18
• 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
Page 19
… 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
Page 20
Public Sector Capacity Building
Understanding the Need—Africa as Example
IFAC Member
Bodies
IFAC Associates
PAO established
No PAO
Page 21
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
Page 22
Are you?
ACCOUNTABILITY. NOW.
Page 23
• 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.