Fostering Financial AccountabilityCReCER Annual Conference 2012, Managua

The World Bank

Elizabeth Adu Director, Operational Services

Latin America and the Caribbean RegionWorld Bank

2007

2008

20092010

2011

CReCER : Propelling Accounting and Accountability in the Public and Private Sectors

Accounting Standards 2012

Mexico

El Salvador

Brazil

Panama

Argentina

Nicaragua

2

• Is essential for the implementation of public policies and the achievement of development results

• Supports strategic allocation of resources and efficient service delivery

• Enables: Planning and executing the budget in line

with government prioritiesAggregate fiscal disciplineManagement of fiscal risks

Good Public Financial Management (PFM) …

3

PEFA data for 26 countries : Accounting and Auditing performance is lagging

PFM Performance in LAC

A B C D0

10

20

30

40

50

External Scrutiny and Audit

ABCD

A B C D05

10152025303540

Accounting, Recording and Reporting

ABCD

A B C D0

50

100

150

200

All Other Indicators*

ABCD

(A = highest score, D = lowest)

* Other indicators relate to budget credibility, comprehensiveness, transparency and execution.4

World Bank Support to PFM in LAC

Guatemala SAI

Dominican Republic SAI

Brazil SAI

Paraguay SAI

OLACEFS Regional SAI

CAROSAI Regional SAI

OCCEFS Regional SAI

Mexico SAI, Sec. of Public Admin Treasury, MOF

Panama MOF, Treasury

Colombia Standard Setter

Jamaica Parliamentary Oversight

Costa Rica PEFA

Uruguay PEFA MOF

Honduras Municipal PEFA

The Bank continues to support partner countries in developing robust PFM systems through institutional support

Haiti SAI, MOF

5

CReCER Knowledge and Learning ActivitiesSupport PFM Development

Accountability in Public Expenditures in LAC (2009)

Translation of 2011 IPSAS Handbook and IPSAS Study 14

CReCER Regional Dialogue

Series: COSO Application in the Public sector (September 2012)

IPSAS Train the Trainers seminar (planned)

6

Good Accounting and Auditing depends on the Public and Private Sectors working together

Str

on

g

Acc

ou

nti

ng

P

rofe

ssio

n • Establishing legal and institutional framework for accounting and auditing

• Education requirements and curriculum

• Professional standards and Code of Ethics

Pu

bli

cP

riva

te

En

suri

ng

C

om

pli

an

ce

Pu

bli

cP

riva

te

• Setting accounting and auditing standards

• A&A oversight of regulated entities• Quality assurance arrangements• Disciplinary regime for the

profession 7

Accountancy Profession: Serving the Needs of the Private and Public sectors

PrivateSectorA & A

Public

SectorA & A

• IPSAS are modeled on IFRS• ISSAIs (financial audits) are based on

ISAs• Many State-owned Enterprises apply

IFRS

Accounting Standards

Accounting & Audit Profession

8

CReCER is a Model for the World

Other Regions are following CReCER’s lead:

South Central and South East Europe: Road to Europe: Program of Accounting Reform and Institutional Strengthening (RePARIS) Supports improved corporate financial

reporting to facilitate potential integration into (or harmonization with) the European Union

Other CReCER-like initiatives contemplated for the South Caucasus countries, East Asia Pacific and Middle East/North Africa

9

Thank you