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EPSAS (European Public Sector Accounting Standards)The future of public sector accounting?

Hessian Representation, Brussels, 11 February 2014

EPSAS - Current state of play

Alexandre Makaronidis, Head of Task Force EPSAS, Eurostat

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A proposal for the way forward

I – Study on the suitability of IPSAS

II – EPSAS conference

III – Next steps of EPSAS project

IV – What are EPSAS?

V – EPSAS governance proposal

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I – Study on the suitability of IPSAS: Retrospective

Public consultation on

IPSAS

Study on public sector

accounting and auditing practices

EPSAS Conference

QIV 2011 QI 2012 - QIV 2012 QII 2013

Budgetary Frameworks

Directive "… the Commission

shall assess the suitability of the International Public Sector Accounting Standards for the Member States"

QI 2013

Report on suitability of

IPSAS IPSAS cannot easily

be implemented in EU Member States as it stands currently

IPSAS would be a suitable starting point for the future development of a set of European Public Sector Accounting Standards

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Task Force IPSAS

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II – EPSAS Conference

Conclusions of the conference

• Political support is growing

• EPSAS: a necessary tool for further fiscal and budgetary integration in EU and better public sector management

• Ambitious project with medium-term scope

• Next steps envisaged: a Commission Communication, followed by a Framework Regulation

• Governance is a priority to follow up after the conference

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Europe needs harmonised public sector accounts

"There are no sound fiscal policies without good government finance statistics based on good public accounting"

"The importance of the reliability of government accounts has been illustrated by some dramatic episodes of inaccurate reporting of deficits and debts . . ."

"As we continue on our road towards deeper European integration, towards a genuine economic and monetary union, we will increasingly need fully comparable public sector accounts covering all sub-levels of general government"

II – EPSAS Conference

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III - Next steps of EPSAS project

Taking forward the EPSAS project

• Stage 1 (mid-2013–mid-2014): Commission Communication• Stage 2 (mid-2014 – end-2015): Framework Regulation:

• Governance structures and due process• Key principles of EPSAS• Compliance monitoring• Impact assessment• Mid-term work programme

• Stage 3 (end-2015 – 2020): endorsement and stepwise implementation

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Outputs from:

- External study (PwC)

- TF EPSAS Governance

- TF EPSAS Standards

- Public consultation on EPSAS governance

III - Next steps of EPSAS project

Commission Communication

Framework Regulation

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IV - What are EPSAS?

EPSAS are: • a suite of accruals based European standards • for public sector accounting and GPFR• grounded and legislated on the basis of the EU Treaties• common to all public entities belonging to General Government• for all EU Member States• based on strong EU governance• subject to internal control and independent audit

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V – EPSAS Governance – possible structure

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V – EPSAS Governance – possible structure

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V – EPSAS Governance – possible structure

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V – EPSAS Governance – possible structure

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Useful links

Assessment Report, Staff Working Document and Inventory of MS accounting and auditing practices:http://epp.eurostat.ec.europa.eu/portal/page/portal/government_finance_statistics/government_accountingConference webpage: http://epp.eurostat.ec.europa.eu/portal/page/portal/conferences/introduction/2013/epsasPublic Consultation on future EPSAS governance:http://epp.eurostat.ec.europa.eu/portal/page/portal/public_consultations/consultations/epsas

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