Ministry of Irrigation & Water Resources Management,Sri Lanka- Current Accounting System &...

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This Slideshow is about the suggested Accounting System for Sri Lankan government entities. Basically it is about the usage of current Accounting system, Cash based Accounting System & the proposed system, Accrued based Accounting System in Ministry of Irrigation & Water Resources Management, Sri Lanka. This is not not an individual work of mine. This is a team effort of myself, Chandi Damayanthi & Janith Perera, who are undergraduates in Sabaragamuwa University of Sri Lanka.

Transcript of Ministry of Irrigation & Water Resources Management,Sri Lanka- Current Accounting System &...

  • Current Accounting System & Upcoming Changes
  • Vision Prosperous Sri Lanka through Water and Irrigation Heritage. Mission Providing well being of community while fulfilling all water needs through Water Resources Management.
  • The main Functions of the Ministry Formulation of policies and implementation of Projects and Program. Fulfilling obligations under Mahinda Chinthana Vision for the Future and overall national policies. Promotion, construction, operation, maintenance and management of Irrigation systems, Rain water harvesting, and Ground water development.
  • Salt water exclusion program. Drainage and Flood protection. Prevention of the pollution of rivers, streams, reservoirs and other water bodies. Engineering consultancy services and construction. Implementation of legislative enactments relevant to the subjects and Institutions under the Ministry. Matters relating to Mahaweli Development.
  • Divisions & Branches of the Ministry Water Resources Engineering Services Planning & Plan Implementation Mahaweli Systems Lands & Land Development Finance Administration Internal Audit Irrigation Management Division Institutions of the Ministry Irrigation Department Mahweli Authority of Sri Lanka Water Recourses Board Central Engineering Consultancy Bureau
  • Cash receipts, cash payments & cash balances are mainly considered Cash base accounting enhance the comprehensiveness & transparent of financial reporting of cash receipts, cash payments & cash balances
  • It enhance comparability with the entities own financial statements of previous periods & with the financial statements of other entities it is which adopt the cash base of accounting
  • Only cash or cash equivalents, received or paid by the entity within the time period is considered. Assets valuation is not implemented Debtors & creditors are not maintained Asset depreciation is not considered Profit or loss cannot be ascertained
  • It is basically about presenting surplus or deficit for the period of time in an government entity. Entities total amount of revenue and expenditure for the period is reported. Financial Statements are presented to ensure comparability both with the entitys Financial Statements of previous periods and with the Financial Statements of other entities.
  • The objective of Financial Statements are to provide information about the financial position, financial performance and cash flows of an entity. The objective of Financial Statements in the public sector is to provide information useful for decision making and mainly to demonstrate the accountability of the entity.
  • It is, Providing information about the sources, allocation, and uses of financial resources Providing information about how the entity financed its activities and met its cash requirements Providing information that is useful in evaluating the entitys ability to finance its activities and to meet its liabilities and commitments Providing information about the financial condition of the entity and changes in it
  • Providing aggregate information useful in evaluating the entitys performance in terms of service costs, efficiency, and accomplishments Indicating whether resources were obtained and used in accordance with the legally adopted budget Indicating whether resources were obtained and used in accordance with legal and contractual requirements, including financial limits established by appropriate legislative authorities
  • Accrued based Accounting System is more complex than Cash based Accounting System Errors can be occurred when reporting a large volume of transactions Asset valuation problems
  • Most government workers are narrow minded and resist to get them updated in to new systems Lack of knowledge & training Attitude problems
  • Awareness step Giving the most basic idea about the new system Educational step Providing a descriptive knowledge about the new system Training step Providing a practical knowledge about implementation of the new system within the entity
  • Forming a separate teams, leaded by experts Organizing sessions for provide a better understanding about objectives of the circular alters the accounting system Holding a session knowledge about the implementation of the new system in other countries not only which are in developed but also in developing countries such as Rwanda, Uganda, Algeria, South Africa, Ghana, India,China
  • Created by; Shakthi Fernando Chandi Damayanthi Janith Perera BSc. Financial management(Special)- Undergraduates Sabaragamuwa University of Sri Lanka