International Trends in Public Sector Accounting Reforms
The Center of Excellence in Finance organized, in partnership with the World Bank and the International Monetary Fund, an annual policy conference on April 20-22, 2011 at the Grand Hotel Union in Ljubljana, Slovenia.
The global economic crisis has underscored the importance of accountable and transparent use of public funds, in particular in light of deteriorating fiscal positions and rising public debts. There is now a growing consensus that good information on government's activities matters. Overall, public sector accounting and budgeting can either strengthen or weaken the trust which underpins relations in a society. It is, for this reason, essential that explanation it provides on past and current trends is accurate and reliable. Some countries use a cash based approach, others have moved, in part or completely, to accrual because of the benefits it brings. But this move also entails risks and preparatory actions that need to be carefully planned and well understood, especially if the institutional setting is weak and capacities for proper implementation are missing.
The conference discussed the increased role of accounting in the public sector, especially in the post financial crisis era, revisited its evolution in the recent years and discussed lessons learned and offered recommendations on the design of future public sector accounting reforms.
The conference brought together around 200 participants, mainly high-level officials from ministries of finance and other institutions that play a key role in accounting and budgeting in their organizations.
Topics covered:
- Expected results and related costs: Experience is mixed
- Challenges of the transition from cash to accrual
- Speaking the same language: International standards
- Importance of accrual framework for macro-economic policy
- Pondering benefits and costs
