International Public Sector Accounting Standards (IPSASs) are the accrual accounting standards that have been developed for application by public sector entities issuing general purpose financial statements. Countries across South East Europe are under pressure to introduce accrual based accounting, including the adoption of IPSAS standards. Additionally, the initiative of the European Commission to develop European Public Sector Accounting Standards (EPSASs) adds to this pressure.

To better prepare for accrual accounting reform, it is important to explore the issues that need to be taken into account as part of the process for introducing the IPSAS, including the impact on management, the relative priority of this reform given the benefits countries are seeking and the likely timetable for such a development before a decision to implement the IPSAS has been taken by a country.

What you will learn

The course will focus on the most important issues that need to be taken into account in the decision making for introducing accrual accounting using the IPSASs.

During this workshop we will discuss the following topics:

The factors that need to be taken into account when considering the implementation of accrual accounting
The steps countries need to take in order to prepare for the introduction of the IPSASs
The technical requirements falling upon Ministries of Finance
Building a technical accounting competence
Developing accounting policies to accompany the IPSASs
An update on the development of the IPSASs
Management and accrual accounting information
Considerations whether accrual accounting reform is a priority when compared with other reforms
Most difficult and time consuming issues including possible timetables

How you will benefit

The aim of this workshop is to facilitate a discussion in countries that are considering the adoption of accrual accounting using the IPSASs.

By the end of the workshop, participants will be able to:

Understand the key factors that need to be taken into account when considering the implementation of accrual accounting
Describe particular responsibilities that will fall on a Ministry of Finance, including in the determination of accounting policies
Recognize the impact that accrual accounting will have upon management and hence the importance of the role of managers
Appreciate the most difficult issues in achieving the successful adoption and implementation of accrual accounting

Who should attend

Managers and / or senior practitioners with experience in accrual accounting
Managers who are responsible for managing services or activities using considerable assets such as buildings, land and equipment
Service finance officers with responsibility for preparing cash based budgets and will have responsibility for preparing accrual based reporting accounts
Representatives from Supreme Audit Institutions (SAI) and internal auditors
Trainers who will be expected to prepare progammes to support accrual accounting implementation
Other public officials for whom IPSAS is an identified development need

Your contributions

The workshop will be highly participatory. Participants will be asked to share country experiences and challenges in adopting and implementing accrual accounting using IPSAS.

Participants will be as well asked to fill out a pre-workshop questionnaire.

Requirements

Event will be in English only. Participants should have a good command of English language.

Faculty

Noel Hepworth, Independent Public Policy Professional, UK

Noel Hepworth was Chief Executive of CIPFA from 1980-1996. He was Chairman of the Féderation des Experts Comptables Européens Public Sector Committee from its establishment in 1985 to 2003. As part of this he was responsible for providing a European perspective on the IFAC public sector standards proposals. In addition on behalf of the Féderation des Experts Comptables Européens he was responsible for the development of their agenda of activity and managed the work of the European profession on the introduction of the single currency across the EU, 1996 to 2001. He was also a technical adviser to the IFAC public sector committee for a period of years.

From 1996 he was also Chairman of the Institute of Public Finance (a wholly owned subsidiary of CIPFA). In this capacity he was responsible for the development and management of the Institute’s international strategy with particular regard to the establishment of certified training programmes in public sector accounting and internal and external audit, in developing and transition economy countries, including Slovenia, Croatia, Albania, Macedonia and Kosovo.

More recently, he has worked extensively with OECD/SIGMA and completed peer reviews and annual assessments of public financial management in many Balkans and Eastern European countries. He is also the external adviser to the Palestine Ministry of Finance Audit Committee.

Noel Hepworth is a qualified accountant and has been a member of the Chartered Institute of Public Finance and Accountancy (CIPFA) since 1958. He holds a post graduate diploma in public administration from the University of London. He has been awarded honorary doctorates by the University of Hull, by the University of Brighton and by London City University. He is a member of the Royal Society of Arts and was awarded an OBE by Her Majesty the Queen in 1980.

Duncan Last, Public Financial Management Advisor for South East Europe, IMF

Duncan Last is the new IMF Public Financial Management Advisor for South East Europe having previously been based in IMF headquarters for the last 8 years. Prior to that he had been working in the field for 20 years covering various topics in public financial management, including: PFM advisor in the IMF’s AFRITAC East Regional Technical Assistance Center; budget and treasury advisor in Slovenia also covering various countries in the region, during which time he helped establish the Center of Excellence in Finance; budget and IFMIS advisor in Mali and Papua New Guinea, debt management advisor in Papua New Guinea, and debt management software designer at the Commonwealth Secretariat in UK. He also had three other careers before public finance: teacher of physics, manufacturing engineer, and software designer. Slovenia was also where Duncan developed the most important passion of his life (after his family) - sailing. Duncan grew up in Ethiopia, where he attended the French Lycée. His interests are travel, history, environment, politics, chess and bridge.

Victoria Bainbridge, South East Europe Business Development Manager, CIPFA

Victoria Bainbridge is a member of the Chartered Institute of Public Finance and Accountancy (CIPFA), the world’s only professional accountancy body specialising in public services. She has recently been working alongside CEF as CIPFA’s South East Europe Business Development Manager, including workshop presentations on IPSAS and accruals accounting for Ministries of Finance in Albania and Serbia, and developing certification programmes for the PACT and TIAPS programmes.

Victoria has implemented accruals accounting in the United Kingdom, including initial policy development and process solutions across different transaction streams (administration, taxation, social benefits). Her other wide experience in public financial management includes capacity building programmes in fields such as financial control and governance, and as an auditor of public sector external and internal audits in central and local government, and state health services. She has also implemented accruals accounting solutions in the commercial and third sectors; managed public sector external and internal audits in central and local government, and state health services; and delivered other financial control and governance projects, such as Sarbanes-Oxley solutions.

Victoria also lectures in business administration at the University of Applied Sciences, Darmstadt, Germany. She has 15 years of experience in delivering training programmes and workshops in a range of settings on diverse public financial management, implementation, business and other subjects. Victoria is also a Certified Internal Auditor.

Lucia Kašiarova, Project Manager and Senior Expert Advisor, Ministry of Finance, Slovakia

Lucia Kašiarova is a Project Manager and Senior Expert Advisor at Ministry of Finance of the Slovak Republic. She had been previously working as an auditor at KPMG. Recently she has been also involved in the United Nations Development Programme (UNDP) as a Consultant and has been working with the Ministry of Finance of Montenegro to strengthen their capacities in accrual accounting and reporting.

Lucia is a fellow member of The Association of Chartered Certified Accountants (ACCA) and a member of the Slovak Chamber of Auditors.

She started working at the Slovak Ministry of Finance in 2006, and since then gained a lot of experience and knowledge in designing of public sector accounting and reporting system, developing accounting legislation (setting accounting standards), and developing information system that supports the public finance accounting and reporting system. She has been involved in the implementation of accrual accounting and reporting system in Slovak public sector.

Lucia is also cooperating with the Slovak Chamber of Auditors and with Slovak Auditing Oversight Authority in various areas (audit quality reviews, trainings development and workshops delivery).

Marija Popović, Head of Department for Budget Accounting and Reporting, Ministry of Finance, Montenegro

Marija Popović is a Head of Department for Budget Accounting and Reporting at the Montenegrin Ministry of Finance. She is involved in the implementation of budget accounting policy and in the preparation of budget final account. She was also involved in the preparation of the strategy for transition of public sector to accrual accounting.

Currently she takes part in a project that aims to implement a unique state property register and is actively involved in a project that aims to implement ESA 2010 methodology in financial statistics.

Marija finished CIPFA's Training for Internal Auditors in Public Sector (TIAPS) and received International Certificate. Since 2015, she is a tutor to Montenegrin students who are pursuing the international certificate in public sector internal auditing. She is also a national coordinator of CIPFA's Public Accountants Certification Training (PACT).

Marija is a graduate of the University of Montenegro. She successfully completed postgraduate studies in Finance and Banking. She regularly attends trainings and seminars in public sector accounting.

Steps Needed to Implement Accrual Accounting in Accordance with the IPSASs