CIPFA’s International Strategy Panel held its first meeting on 16 October 2006. The Panel, which is chaired by Dr. Clive Grace, considered a number of presentations describing the nature and range of international activities underway in CIPFA at the time. The panel’s next meeting is scheduled for 23 February 2007, when it will receive an update on developments along with proposals for implementing the relevant aspects of CIPFA’s latest Development Strategy.
CIPFA entered into a new phase of its relationship with the Department for International Development (DFID) as the new 3‑year Strategic Partnership Framework Agreement (SPFA) with the DFID got underway in November 2006. The SPFA, which follows on from the previous Strategic Grant Agreement with the DFID, commits CIPFA to supporting the implementation of the DFID’s policy agenda with regard to public financial management. The first activity under the Agreement is already being planned, with CIPFA supporting the delivery of a training programme in the Public Financial Management Performance Measurement Framework, to be delivered by members of the Public Expenditure & Financial Accountability program.
The Framework was the subject of an introductory article in the Q4 2006 edition of this Newsletter, you can download a Word document of it from www.cipfa.org.uk/international/download/PEFA_article.doc
CIPFA’s International Certificate and Diploma has been launched in Lesotho. Supported by funding from IrishAid (www.irishaid.gov.ie), the international development arm of the Irish Department of Foreign Affairs, the programme is beginning with an intake of 75 students who will start their CIPFA studies at the Centre for Accounting Studies (CAS) training premises in Maseru in February 2007. The programme is being run on a pilot basis for two years, with a view to evaluating its effectiveness before rolling it out more widely in the country after that.
A team from CIPFA’s Education and Training Centre travelled to Lesotho in December 2006 to carry out the initial training of staff from the CAS there. CAS has been selected as CIPFA’s local academic partner to implement the qualification.
Award of certificate and diplomas - CIPFA International Certificate and Diploma in Public sector Accounting and Audit
During October Noel Hepworth, Chairman of CIPFA International and Mira Dobovisek Director of the Center of Excellence in Finance, Slovenia, presented certificates and diplomas to students who had been successful in the CIPFA International Certificate and Diploma programme of training. This programme is being delivered in a number of countries and the awards were made to successful students in Albania, Croatia and Slovenia. In total 190 awards were made, of which 133 were at the certificate level and 57 at the Diploma level. Holders of the Diploma are entitled to Affiliate membership status of CIPFA.
On 28 and 29 September 2006 CIPFA participated in the Africa Region Learning Workshop (ARLW) in Nairobi, Kenya. The Learning Workshop was hosted by the Eastern Central and Southern African Federation of Accountants (ECSAFA) and the Institute of Certified Public Accountants of Kenya (ICPAK). The objective of the Learning Workshop was to support improvement in financial reporting and boost capacity building and sustainability within the accounting and auditing profession in Africa so that the profession can better facilitate economic stability and growth on the African continent. It focused on enhancing the capacity of both the private and public sector in Africa to produce high quality financial information.
The Workshop represented the first major collaborative effort between IFAC and the development agencies to address the development of the accounting profession on the African continent. A report on the outcomes of the Workshop, along with copies of the presentations made, can be found at www.ifac.org/DevelopingNations/africa_workshop.php.
At the ARLW CIPFA launched its paper “The role of the professional public sector accountancy body in effective public administration”. This describes a case study of work undertaken by CIPFA, on behalf of the Ethiopian Government, to scope the conditions required for setting up a public sector accountancy institute and training program in Ethiopia. A free PDF of the paper can be downloaded from www.cipfa.org.uk/international/download/Role_Prof_Sector.pdf.
Noel Hepworth, Chairman of CIPFA International, participated in the Peer Review for Cyprus, organised by the OECD and SIGMA, which culminated with the production of the Peer Review Report in the second half of 2006. Peer review is described by the OECD itself as the systematic examination and assessment of the performance of a State by other States, with the ultimate goal of helping the reviewed State improve its policy making, adopt best practices, and comply with established standards and principles. The examination is conducted on a non-adversarial basis, and it relies heavily on mutual trust among the States involved in the review, as well as their shared confidence in the process. More information about the Peer Review Mechanism is contained in “Peer Review: A tool for cooperation and change”, published by the OECD, with a summary Policy Brief available from www.oecd.org.
The Center of Excellence in Finance based in Slovenia organised a week long workshop for mainly Balkans countries to explore the impact on accounting arrangements of the Introduction of Accrual Accounting. CIPFA assisted the Center with the organisation of that workshop and Noel Hepworth acted as Chairman. Speakers were from the UK, France, The Netherlands and Croatia and the programme included coverage of the benefits and risks of accrual accounting, a comparison between cash and accrual accounting and the impact on GFS and ESA reporting, the changing role of the accountant in the public sector, and a series of country case studies. The workshop was attended by 29 participants from six countries in the region.
Secretary of State hails Tanzania's 'excellent progress'
International Development Secretary Hilary Benn unveiled DFID’s £105 million budget support for Tanzania next year. Speaking after a meeting with President Kikwete of Tanzania, Mr Benn pointed towards the development of democracy, economic growth and more effective government across Africa, and highlighted to progress that has been made in Tanzania in particular. Mr Benn also announced that the UK will provide £105 million of direct budget support to Tanzania in 2007/8, up from £90 million this year. Budget support is money provided directly to the Government of Tanzania to support its own poverty reduction plan.
Read more at www.dfid.gov.uk/news/files/pressreleases/tanzania-progress.asp
Developing global partnerships in education: The World Classroom
The UK will spend £8.5 billion over the next decade to help the developing world realise the aim of Education for All. The Department for International Development (DFID) runs a school linking programme designed to encourage and increase understanding of the challenges and opportunities that face school children across the world.
Read more at www.dfid.gov.uk/news/files/pressreleases/world-classroom.asp
UK calls for more action to fight corruption
The UK looked for agreement on better handling of corrupt assets in the international system when it met international partners at a UN anti-corruption conference. The inaugural Conference of States Parties to the UN Convention against Corruption (UNCAC), which took place from 10-14 December in Jordan, aimed to agree further steps to fight the scourge of corruption.
Read more at www.dfid.gov.uk/news/files/pressreleases/corruption-action.asp
IPSASB issues ED23 on Disclosure Requirements for recipients of External Assistance
IPSASB has issued a proposed amendment to the Standard “Financial Reporting under the Cash Basis of Accounting” that proposes requirements for the disclosure of information about external assistance. It also identifies additional disclosures that a recipient is encouraged, but not required, to make.
Read more and download the draft at www.ifac.org
IPSAS24, “Presentation of Budget Information in Financial Statements”, was published in January 2007. The Standard applies to entities that adopt the accrual basis of financial reporting, and requires that a comparison of budget and actual amounts for the reporting period be included in the financial statements.
IPSASB has also published IPSAS23, “Revenue from Non‑Exchange Transactions”. This new standard addresses a number of issues that are critical to the reporting of tax revenue, including the basis on which a wide range of taxes should be recognised and measured. The standard also deals with the other major source of non‑exchange revenue for public sector entities, transfers, including grants from other governments and international organisations, gifts and donations.
IFAC has set up the IFAC KnowledgeNet, a web based resource that “provides one-stop access to thousands of articles, management tools and good practice guidance developed for professional accountants in business by IFAC and more than a dozen professional accountancy organizations worldwide”. It is accessible from the IFAC home page at www.ifac.org.
The latest edition of the IPSASB Newsletter is available from www.ifac.org. Items that are likely to be of interest to readers of this Newsletter include:
- IPSASB Issues 11 Standards Revised to Achieve Clarity and Convergence
Earlier this month, the International Public Sector Accounting Standards Board (IPSASB) released 11 International Public Sector Accounting Standards (IPSASs) revised as part of its Improvements Project. The purpose of this project was to converge the IPSASs with their equivalent International Financial Reporting Standards, issued by the International Accounting Standards Board, where appropriate for the public sector. The IPSASB also released a revised Preface to International Public Sector Accounting Standards which clarifies that, from now on, all paragraphs within all IPSASs have equal authority.
The 11 revised IPSASs, which are effective for periods beginning January 1, 2008, and the Preface may be downloaded free-of-charge from www.ifac.org/store. They will also be included in the 2007 Handbook of International Public Sector Accounting Pronouncements.
- IFAC Seeks Public Member for IPSASB
On February 15, IFAC will issue its Call for Nominations for candidates for membership on IFAC boards and committees in 2008. IFAC is seeking a public member to serve on the IPSASB beginning January 1, 2008. Detailed information on qualifications and regional representation requirements as well as the anticipated time commitment will be included in the Call for Nominations. Nominations will need to be submitted by April 15, 2007 using the IFAC candidate information form. For more information and to access the form, which will be available starting February 15, visit the IFAC website at www.ifac.org/nominatingcommittee.
- IPSASB Issues New Standards to Promote Greater Accountability with Budgets
To help promote greater accountability with budgets, the IPSASB recently released two standards that identify disclosures to be made by governments and other public sector entities that make their approved budgets publicly available. The new standards require public sector entities to include a comparison of budget and actual amounts in the financial reports and an explanation of any material differences between budget and actual amounts.
IPSAS 24, Presentation of Budget Information in Financial Statements, applies to entities that adopt the accrual basis of financial reporting. In addition, the cash basis IPSAS, Financial Reporting under the Cash Basis of Accounting, has been updated to include both required and encouraged disclosures that apply to entities that adopt the cash basis of financial reporting. Both standards are available from the www.ifac.org/store and will be included in the 2007 handbook.
- 2007 Handbook of Public Sector Pronouncements Available Soon
IFAC is preparing to issue the 2007 Handbook of International Public Sector Accounting Pronouncements. The 2007 handbook contains all pronouncements issued by the IPSASB as of December 31, 2006, including the 11 IPSASs revised as part of the Improvements Project; IPSASs 22, 23 and 24; and the updated cash basis IPSAS. It also includes the IFAC Code of Ethics for Professional Accountants.
The handbook will be available for download in PDF format in February with the print handbook available for delivery in March. Both versions are available free-of-charge, except for a US$15 charge for shipping costs for the printed version. To order either version, visit www.ifac.org/store or call +1 212-471-8722.
- Project to Develop Public Sector Conceptual Framework Gets Underway
The IPSASB is undertaking a collaborative project with a group of national standards setters and similar organisations to develop a public sector conceptual framework. While many concepts, definitions and principles are embedded within specific IPSASs, the IPSASB recognises there is a need for a single document that brings together, identifies and explains these concepts, definitions and principles. The project will seek to develop a conceptual framework which is applicable to the preparation and presentation of general purpose financial reports of public sector entities including, but not necessarily limited to, financial statements and notes thereto.
For more information, see the project brief at www.ipsasb.org.
- Mike Hathorn Becomes IPSASB Chair
Mike Hathorn of the United Kingdom became chair of the IPSASB on January 1, 2007. Mike is a member of CIPFA’s Accounting & Auditing Standards Panel and the International Strategy Panel.
| 6-7 March 2007, London |
Financing for Development, Workshop on Debt, Finance and Emerging Issues in Financial Integration |
| 20‑23 March 2007, Accra, Ghana |
International Public Sector Accounting Standards Board |
| 26-29 March 2007, New Zealand |
Commonwealth Local Government Conference 2007 |
| 21‑25 May 2007 Miami, Florida, USA |
The International Consortium on Governmental Financial Management New Developments in Governmental Financial Management: Bringing Together the Tools, Talent, and Technology” |
| 12-14 June 2007, Bournemouth |
CIPFA 2007 Conference & Exhibition |
| 13-15 June, Coimbra University, Portugal |
Joint FEE Public Sector Committee CIGAR Meeting |
CIPFA’s Better Governance Forum has produced guidance on the action that is needed for organisations to be effective in countering fraud and corruption. “Managing the risk of fraud: Actions to Counter the Risk of Fraud and Corruption”. The guidance has been endorsed by CIPFA’s Audit Panel, and this is the first time that such guidance has been published. The document is freely available through the CIPFA Better Governance Forum website.
Series 5 in the perennially popular series of Systems Based Auditing (SBA) Control Matrices is now available from the CIPFA shop.
Also available from the CIPFA shop is “The Excellent Internal Auditor: A good practice guide to skills and competencies”, a new and updated version of CIPFA’s “Audit Training Planning Guide”, first published in 1994.
Effective balance sheet management can generate real savings for organisations, and “Balance Sheet Management in the Public Services: A Framework for Good Practice”, published by CIPFA provides assessment and analysis tools that organisations can use to understand their balance sheet and to identify areas where the greatest focus is needed for improvement.
Municipalities and finance: a sourcebook for capacity building, Edited by Ian Blore, Nick Devas and Richard Slater, 2004. Paperback £24.95. ISBN 1844071405.
CIPFA members undertake a variety of challenging and interesting international development roles. These roles build on their CIPFA qualifications and UK experience. Following are personal examples of this work provided by members.
Deborah Williams, CIPFA’s representative on the Developing Nations Committee of IFAC, and an experienced international consultant, describes her experiences of international development, which began with an invitation to work with the Presidential Review Commission of South Africa, established by President Mandela to advise on public services transformation. Read her description of the experience. Download the PDF here.
Mark O’Donnell made the culture switch from providing financial management support to the Social Work Service in Dundee, Scotland, to working on a large financial management reform project in Dhaka, Bangladesh, and gives an illuminating insight into his experiences. Download the PDF here.
Click on the link below to access the first edition of the International Development E-newsletter:
2006 - Q4
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