Belgium's Transition to Accrual Accounting - Marc De Spiegeleire, Belgium
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Transcript of Belgium's Transition to Accrual Accounting - Marc De Spiegeleire, Belgium
Marc De Spiegeleire
16th OECD Annual Symposium - Paris, 21-22 March 2016
17 March, 2016 Federal Public Service – Budget
Federal Ministry of Budget Belgium 1
Introduction
Regulatory State of Play
System & Accounting Design & Rollout
Objectives
Remaining challenges
Lessons learned
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Federal Ministry of Budget Belgium 2
From Cash Accounting to Accrual Accounting
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Federal Ministry of Budget Belgium 3
Legal Framework Governance – Key Dates
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Federal Ministry of Budget Belgium 4
• 1991: Starting point of the Reform of Public Sector Accounting • 1991 - 2003: legislative work. • 2003: New Public Sector Accounting Law - May 22nd 2003. • 2009: Standardized Chart of Accounts published by Royal Decree • 2010: Creation of the Public Sector Accounting Commission (CCP). • 2010 - xxxx: Regular updates of the Law of May 22nd 2003. • Upcoming next: Review national Law on compliance with IPSAS or
EPSAS.
“Fedcom” project Governance – key dates
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Federal Ministry of Budget Belgium 5
• 2001 - 2007: Feasibility studies and contract negotiations • 2007 - 2008: Blueprint & design fase • 2009: Go-live Pilot with 4 Federal Public Services (FPS), • 2012: Go-live of last Roll-out wave • ≥ 2013 - 2014: Stabilization & consolidation of existing system • ≥ 2015 - 2017: Further development & enhancements of the system
2nd BIG
Challenge
Framework for accounting and financial internal control enabling to improve:
Transparency
True and Fair Value
Management information opportunities
Harmonisation of general government accounting standards,
Process and quality of internal control in federal state public entities,
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Publish annual financial statements
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Federal Ministry of Budget Belgium 7
A new ERP (Enterprise Resource Planning), “Fedcom” (based on SAP):
Dedicated to financial, budgetary and analytic accounting management,
Shared at Federal level,
Improvement of the audit trail.
3.500 daily users
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Constrains
Goals
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Extended accounting system to include automated links between: Accrual accounting Budgetary accounting Analytical Management accounting
A
B
C
Fiscal revenues still recorded on cash basis Work in progress
Achieve transition period for Fixed Assets Transition period ending in 2016
Provisions (exhaustivity) Under review
Move to Accrual Budgeting Not yet planned
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Federal Ministry of Budget Belgium 10
Key factors to success Involvement from Administration and politics
Openess for Change en process re-engineering
Appropriate training on accounting and system usage
Need to enforce standardized processes & best practices acceptance
Try to combine the move to accrual Accounting with the move to accrual Budgeting
17 March, 2016
Federal Public Service – Budget Federal Ministry of Budget Belgium 11
17 March, 2016 Federal Public Service – Budget
Federal Ministry of Budget Belgium 12