Financial Data Reporting System - Ministry for Finance circular |financial data reporting system...

11slide number Ministry of Finance, The Economy and Investment

www.fdrs.gov.mt

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Financial Data

Reporting System


www.fdrs.gov.mt

09:00 – 09:15, Registration / Coffee

09:15 – 09:30, Video Address

Mr Alfred Camilleri, Permanent Secretary, MFEI

09:30 – 10:15, Understanding the system

Representatives from Budget Affairs Division &

National Statistics Office

10:15 – 10:45,Data submission

IT Representatives

10:45 – 11:15, Question Time

agenda


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09:15 – 09:30, Welcome Speech






IT Representatives


agenda


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Understanding the

system

Mr Renzo Farrugia

Budget Affairs Division

Mr Mark Galea



www.fdrs.gov.mt

� Back to the drawing board

� Mf circular

� Focus on income statement

� Focus on balance sheet

� Benefits of FDRS

� Periodic on-site review visits

agenda


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� Simple to use and administer

� Quick to implement

� Reduce substantially data collection cycle

� Accessible to public entities

� Easy mechanism to analyse, monitor and control financial information

� Streamline the current forms used by NSO and MFEI in collecting data

back to the drawing board | solution ?


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MFEI

back to the drawing board | different users

National StatisticsOffice

TreasuryFINANCIAL DATA REPORTING SYSTEM


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back to the drawing board | underlying standards

Other nonOther non--financial datafinancial data

Sufficient detail as per Sufficient detail as per management accountsmanagement accounts

MGAS / ESA 95MGAS / ESA 95

Malta Government Accounting System

(mainly based on IFRS)

European System of Accounts 1995

Facilitate monitoring


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25 January 2010 – objectives

� monthly analysis, by the Ministry of Finance, the Economy and Investment, of expenditures and revenues of Government Entities.

� This is to be accompanied by querying facilities and clarifications as necessary, regarding expenditure and revenue trends and patterns, along with variance analysis as the financial year progresses;

� utilisation of data by the National Statistics Office;

� the reporting of end-of-year accruals positions to the Treasury, through the collection of accruals data.

mf circular | financial data reporting system


www.fdrs.gov.mt

Statement of Comprehensive Income (P/L)

Statement of Comprehensive Income (P/L)

??Statement of Financial Position (balance sheet)

Statement of Financial Position (balance sheet)

??

mf circular | financial data reporting system


www.fdrs.gov.mtThis is NOT a replacement of your accounting software

This is a financial reporting tool


www.fdrs.gov.mt

� Monthly basis – entities are required to submit the income statement (profit and loss account) within 15 days following the end of each month

� Quarterly basis – entities are to submit their balance sheet position and other data required within 15 days following the end of each quarter

� Entities are still required to submit to MFEI (in electronic format or printed), the audited financial statements and management letter in accordance with the timeframes stipulated in the relevant Act, Deeds, Memorandum of Understanding or equivalent

mf circular | timing


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� The withholding of tranches due to the entity concerned until such returns are compiled may need to be considered, in the event of default in the submission of returns.

� It is the function of Permanent Secretaries within each Ministry to follow-up and ensure compliance by Government Entities within their respective portfolio, with the provisions of this Circular.

mf circular | defaulters?


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� For security purposes, it shall be the responsibility of the entity concerned to inform this Ministry immediately when a user has terminated employment within the respective entity, such that arrangements may be made for discontinuation of access to the system.

mf circular | change of users


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focus on ‘income statement’ | income

distinction between

� Total own generated revenue

� Government subvention

TOTAL INCOME GENERATED TOTAL INCOME GENERATED


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focus on ‘income statement’ | expenditure

Contractual services

Professional services

Training

Hospitality

Incidental expenses

Bank interest payable.

Bad debts written off

Increase in provision for bad debts

Decrease in provision for bad debts

Other provisions

Depreciation charge

Other recurrent expenditure funded through EU Grants

Other expenditure

Tax expense

Salaries and wages

Bonus and income supplement

Social Security Contributions

Allowances

Overtime

Utilities

Material and supplies

Repair and upkeep

Rent

International memberships

Office services

Transport

Travel

Information services

Classification of expenditure

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focus on ‘income statement’ | expenditure

Classification of expenditure

� Stick to the classification of expenditure identified in the template

� Reduce the use of ‘other expenditure’ to suit miscellaneous items

� Other provisions (accounting related)


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focus on ‘balance sheet’ | presentation

based on MGAS 1

TOTAL ASSETS - TOTAL LIABILITIES = CAPITAL

CURRENT ASSETS

NON CURRENT ASSETS

(property, plant & equipment)

CURRENT LIABILITIES

NON CURRENT LIABILITIES

CAPITAL

RESERVES

http://www.gov.mt/page.asp?i=187&l=1


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counterpart data

other statistical information


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focus on ‘balance sheet’ - NSO

� In order to ensure that our Office will be in a position to comply with Malta’s international reporting requirement, counterpart information is being requested for certain financial assets and liabilities.

WHAT IS COUNTERPART INFORMATION?


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� Counterpart information is the whom-to-whom relationship.

� The entity (institutional unit) with whom a particular transaction takes place.

� These entities are grouped into 6 institutional sectors.



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The sectors are:

� Non-financial corporation sector – their principal activity is the production of goods and non-financial services e.g. manufacturing and utility providers companies.

� Financial corporations sector – corporations engaged in financial intermediation e.g. banks, insurance companies, stockbrokers.

� General Government sector – includes all government departments and ministries, extra budgetary units and local councils.

� Households – individuals or groups of individuals e.g. self-employed persons and individuals.

� Non-Profit Institutions serving households (NPISH) – non-profit making entities e.g. church institutions and social clubs.

� Rest of the World (ROW) – includes all foreign transactions, including those made with the EU Commission.



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� ESA Manual on Government Deficit and Debt sets clear guidelines on classification of EBUs

� Most important considerations are:� Is the entity an institutional unit?� Is the public institutional unit

market or non-market?Non-market producer (50% rule), i.e. if less than 50% of production costs are covered by sales

� NSO annually publishes a list of EBUs


http://www.nso.gov.mt/statdoc/document_view.aspx?id=2544&backUrl=news_by_date.aspx%3fretainCriteria%3dtrue


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In what ways will

FDRScontribute to

Public Entities


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benefits of system | public entities

� Reduce time and resources

� Only ‘one form’ to fill in financial information required by MFEI and NSO

� Transmission is done electronicallythrough one dedicated webpage

� Updates in template automatically visible to users


www.fdrs.gov.mt

benefits of system | public entities

� Automatic e-mail confirmation sent upon submission of data

� Data may be stored on one’s computer for later retrieval

� XL sheet functions are still applicable in submitting this data


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In what ways will

FDRScontribute to MFEI


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Advisory role

Issuing directives

Desk-top monitoring Annual returnsAudited Accounts/

Mgt LetterManagement

Accounts

Annual Return /Quarterly mgt a/c’s

Business Plan / Capital Projects

Ad Hoc

Funding for recurrent / capital

Lease / Buy for Property

Ad Hoc

Monitoring

‘Chasing’ role Chasing audited a/c’s & mgt letters

Chasing mgt accounts

Chasing Annual Returns

benefits of system | mfei

Directives on website


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FDRS Implementation

Advisory role

Issuing directives

Desk-top monitoring

Ad Hoc



Ad Hoc

‘Chasing’ role

Management Accounts





Annual returnsFDRS FDRS

FDRS FDRS

FDRS

Audited Accounts/ Mgt Letter

Chasing audited a/c’s & mgt letters



www.fdrs.gov.mt

Desk-top monitoring Annual returnsAudited Accounts

31.12.08Management

Accounts

Current response rates

response rates 81% 79%

69%

8%response rates mgt a/cs 30.09.09

response rates mgt a/cs for 31.12.09



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8%response rates mgt a/cs for 31.12.09

100%

FDRS Implementation



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benefits of system | reports

� aggregate entity reports

� the possibility to filter and drill down data

� enable us to analyse data vis-à-vis time, particular items of expenditure / income, against other entities, etc.

� monitor both the horizontal and vertical financial issues arising in public entities and across government.


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monitoring of public entities

Other initiative taken by MFEI

periodic on-site review visits . . .


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FDRS Implementation

Advisory role

Issuing directives

Desk-top monitoring

Ad Hoc



Ad Hoc

‘Chasing’ role

Management Accounts






FDRS FDRS

FDRS



other initiative | mfei

entity-risk assessment


www.fdrs.gov.mt

periodic on-site review visits

Considerations of onsite visits Management accounts

Budget EstimatesIssues raised from mgt letter

Compliance with MFEI Directives

Cost structure analysis

management of own resources


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Public E

ntitiesB

udget Affairs

Management accounts

Budget EstimatesIssues raised from mgt letter

Compliance with MFEI Directives

Cost structure analysis

management of own resources

Advisory role

Issuing directives

Desk-top monitoring Management Accounts



Ad Hoc



Ad Hoc

‘Chasing’ role Chasing mgt accounts



FDRS FDRS

FDRS

Considerations of onsite visits



periodic on-site review visits


www.fdrs.gov.mt

focus on . . . | on-site reviews �visit procedure

2. Planning phase

3. Fieldwork phase

4. Closing meeting

5. Reporting phase

6. Follow up phase

Opening meeting

Issues raised

14 days given torespond in writing

Visit Closure Letter

1. Preliminary survey Understand entity


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� certified public accountants by profession

� confidentiality

� independence and ethics

� comply with our established

Manual of Policies and Procedures

focus on . . . | on-site reviews �our reviewers


www.fdrs.gov.mt

Mr Renzo FarrugiaBudget Affairs Division

Mr Mark GaleaMalta Statistics Authority

THANK YOU


www.fdrs.gov.mt

4040








IT Representatives


agenda


www.fdrs.gov.mt

4141

Data Submission

Mr Stefan Farrugia

Senior Implementation Consultant

Computime Ltd.


www.fdrs.gov.mt

4242

Architecture


www.fdrs.gov.mt

4343

Security

� Secure XML Web Service to secure data

� Data transmitted over HTTPS

� Passwords are encrypted� No reading of passwords

� Updates of passwords handled by the users


www.fdrs.gov.mt

4444

Steps

1. Received Login & Password by Email

2. FDRS Alerts for new submission period

3. Authenticate – Change password on first use

4. Select Template5. Select Period6. Fill in Data – No Internet Connection required at this time

7. Submit

8. Receive Acknowledgement by email


www.fdrs.gov.mt

4545

Demo


www.fdrs.gov.mt

4646

Thank You

Mr Stefan Farrugia

Senior Implementation Consultant

Computime Ltd.


www.fdrs.gov.mt

4747








IT Representatives


agenda


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4848

QUESTION TIME


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4949








IT Representatives


agenda


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5050

[email protected]

IT Related issues 25998 224Business issues 25998 450

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Financial Data

Reporting System

Financial Data Reporting System - Ministry for Finance circular |financial data reporting system...

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