Accountability
Public Sector Financial Reporting

IFAC Assembles Global Coalition to Spur Better Public Sector Financial Reporting

Burgess COMMENTARY
1 Comment

Interesting news ... but where and when is this meeting being convened?

I am somewhat underwhelmed by this initiative. I thought this was something that was high on the agenda back in the 1980s and 1990s. As I recall substantial aid funds were directed at the issue of government financial management, of which good reporting is a part.

I was not impressed with either the methods used nor the results achieved by the old efforts. So what are IFAC and all the other high profile big name players going to do this time around that is different from what was done two decades ago. Or maybe it is simply that a younger set of people are going to make exactly the same mistakes that were made last time round.

Peter Burgess TrueValueMetrics.org ... Multi Dimension Impact Accounting

Posted by: PeterBurgess | April 30, 2015 10:06 AM
Peter Burgess

IFAC Assembles Global Coalition to Spur Better Public Sector Financial Reporting

The International Federation of Accountants has convened the first meeting of a coalition of major accounting firms, civil society groups and international organizations to develop strategies to encourage high-quality public sector financial reporting, greater government transparency and accountability, and empowered citizen engagement.

Fayez Choudhury

The Accountability. Now. Coalition includes IFAC and the six largest international accounting firms, along with the Organization for Economic Co-operation and Development and the Global Initiative for Fiscal Transparency, whose members include the International Budget Partnership, the International Monetary Fund, the World Bank Group, and the governments of Brazil and the Philippines.

“Poor public sector financial management can lead to economic stagnation and contraction; severe social problems that impact future generations; and a widened gulf between government and its citizens,” said IFAC CEO Fayez Choudhury in a statement. “IFAC initiated Accountability. Now. to help drive awareness of the critical need for high-quality, transparent, comparable public sector financial reporting, and the importance of engaging citizens in the process of holding governments to account.”

Choudhury noted that some of the world’s poorest countries have the most to gain from having high-quality government reporting to better manage scarce public sector resources, attract investment, and promote accountability.

“IFAC will be focusing much of its efforts on helping these countries implement strategies to embrace high-quality reporting, based on International Public Sector Accounting Standards, and encourage citizens to be part of the fiscal process,” he added. “Understanding the true costs of government services, including all assets and liabilities, is central to good government and global growth. This is an issue that should be of concern to everyone, not just accountants and that’s the exciting part of Accountability. Now. The coalition represents a range of different organizations with the skills and experience to help push for a better social contract between governments and their citizens, at a time when there is enormous pressure on governments to work with tighter budgets and deliver better social outcomes.”

Accountability. Now. represents a coalition of organizations that believe there’s a better way forward for governments of all sizes.

It starts with equipping governments with the foundation for good financial management: transparent, accountable financial information that: captures the entire picture of funding commitments, now and in the future;

facilitates wise spending;

strengthens economies; and, most importantly,

builds trust with their citizens.

Better quality financial information and increased transparency won’t solve all the challenges of governing, but they will greatly assist government decision making and performance.

Toward stronger economies.

We recognize that some of the world’s least developed nations lack the accountancy profession capacity to implement the financial information reforms supported by Accountability. Now.

Conversely, they have the most to benefit from embracing government transparency to boost economic growth and support the development of civil societies. Without good financial management, they will continue to struggle to deliver the demands placed on them.

That’s why the Accountability. Now. coalition is initially focusing on supporting developing economies.

Resources

Accountability. Now. brochure

Public sector financial management news and resources, MOSAIC website

Public Sector Financial Management Transparency and Accountability: The Use of International Public Sector Accounting Standards

IMF Fiscal Transparency Code

Who’s already started their journey to Accountability. Now.?

Implementing accrual based financial reporting takes time. For some governments, the journey takes years. But the destination is worth the journey.

Take a look at who’s already started or completed implementation of the reforms championed by our coalition, what they learned on the journey, and see how transparent, accountable financial information is helping strengthen their economies through the 'A Closer Look at:' series from the International Public Sector Accounting Standards Board.

Resources and reading World Health organization brochure - IPSASB Benefits to WHO ONE transparency web page Global Initiative for Fiscal Transparency (GIFT) 'Accountability. Now. We Must Enhance Government Accountability and Transparency,' Andreas Bergmann, Chair, International Public Sector Accounting Standards Board