Committee on Public Finance & Government Accounting

The Institute of Chartered Accountants of India (ICAI)

The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the

Chartered Accountants Act, 1949 for the regulation of the profession of Chartered Accountants in

India. During its more than six decades of existence, ICAI has achieved recognition as a premier

accounting body not only in the country but also globally, for its contribution in the fields of education,

professional development, maintenance of high accounting, auditing and ethical standards.

ICAI is a founder member of International Accounting bodies namely the International Federation

of Accounts (IFAC), Confederation of Asian and Pacific Accountants (CAPA), South Asian

Federation of Accounts (SAFA), International Innovation Network (IIN), and is a member of Asian

Oceanian Standard Setters Group (AOSSG) and XBRL International. ICAI now is the second largest

accounting body in the world.

The ICAI have around 2.17 lakh members at present, a total of 10 lakh students are currently

pursuing the course in various centres across the country. Besides 21 chapters in foreign countries,

this apex body of chartered accountants had five regional head quarters, 146 branches making it

one of the largest organisation.

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About the Committee on Public Finance & Government Accounting 

The Committee on Public Finance and Government Accounting is a non-standing

technical Committee of the Institute of Chartered Accountants of India formed

under the regulatory provisions of the Chartered Accountants Act.

The committee review the existing Government Accounting System and that basis

suggest improvement along with creating awareness regarding Public Finance &

Government Accounting to the stakeholders including employees of the

Government, members of the profession, media, NGO’s and the society at large.

The committee collaborates with various ministries and professional bodies to

draw synergies in enhancing accountability and transparency including public

service delivery mechanism and uploading the public interest. It endeavors

towards increasing the role of ICAI and its member in the various financial

inclusion initiatives of the Governments.

Cont…

The Committee suggest reforms in Government Accounting System, such as Cash to

Accrual Accounting System, Single Entry to Double Entry Accounting system. It

collaborates with International Financial Institutions / Universities / research and training

institutes for undertaking collaborative research and exchange of information and

publication.

It aims to provide training with in Government bodies, to evolve methods which would

enable in use of present day information technology in assisting the accounting reform

process, collaboration and coordination with Comptroller & Auditor General of India (CAG)

and Controller General of Accounts (CGA) to bring improvements in the framework of

Government Accounting System.

The Committee on Public Finance & Government Accounting plays an important role in

providing policy inputs to the Government in the areas of fiscal reforms, financial sectors

reforms and Public Finance.

Cont…

Shifting from Single Entry to Double Entry/Cash to Accrual Accounting

Development of Accounting Manual, Training on Finance for Non-Finance professionals

Financial Literacy, Energy Audit, Sector specific training, Internal Audit and Stock Audit

Accounting and Public Finance Reforms, Professional Opportunity for members.

Deliverables

Terms of Reference of the Committee on Public Finance & Government Accounting for the year 2014-15

To study, review and suggest reforms in Government Accounting System to ensure

proper utilization and control over Public Finance.

To review, analyze, assist, recommend and suggest measures to the Central, State &

Local Government, Public Sector Undertakings and other organizations including

Municipal Corporation, Blocks, Gram Panchayats in the areas of Policy assessment,

planning and execution in public finance.

Collaboration and coordination with Comptroller & Auditor General of India (CAG),

Controller General of Accounts (CGA) and various Ministries/Government

Departments/Local Bodies for developing a mechanism of improving the Government

Accounting System.

Cont…

Providing awareness of Government Accounting to the society at large and specifically to the

stakeholders including inter–alia to employees of the government, C&AG, members of the

profession, media, NGOs and to citizens generally.

To review budgets, circulars, notifications and other matters on public finance & policies and to

send suitable memorandum/ representation containing suggestions for improvements and/or

rationalization in the legislation or revenue/expenditure of Central/ State Government keeping in

view the overall development of the Nation.

To assist in developing Public Finance structure and a robust mechanism for channelising

adequate resources to ensure appropriate sectoral allocation for inclusive growth and economic

development.

Enhancing the accountability and transparency in public service delivery mechanism.

To study and suggest ways and means of broadening the tax base and increasing tax

mobilization.

To suggest checks and balances for monitoring periodical review/ audit of end use of funds.

To bring out newsletters, publications, and other useful inputs in areas of contemporary issues

related to public finance and government accounting.

Cont…

To form taskforce as required at Regional / State level for attainment of objectives of the

Committee.

To undertake and organize training courses, seminars, workshops and policy dialogue

with a view to enhance understanding of issues concerning public finance and government

accounting.

To increase the role of ICAI and its members in the various “Financial Inclusion” initiatives

of the Government which would mainly emphasis on:

Assisting government in bringing appropriate regulatory and educational policy framework in place.

Collaborating intensively with different chambers and associations of industry.

Enhancing the role of members of the Institute of Chartered Accountants of India in Public

Finance and Government Accounting.

To provide appropriate support to the Council and its Committees on the matters related to

Public Finance and Government Accounting.

Committee on Public Finance & Government Accounting Endeavours

ADVISORY Technical inputs provided to C&AG, CGA, RBI, SEBI, CBDT, CBEC, IRDA etc…

Observation Report on Convergence of Resources of the State Meghalaya

Offered ICAI services on Tax Administration Reform Commission.

Expert Group advisory to Dept. of Public Enterprise, Govt. of India on The Revised

Schedule-VI under the Companies Act.

Spearheaded XBRL revolution in the country with active participation of Ministry of

Corporate Affairs (MCA), SEBI, IRDA and RBI.

Submitted the inputs to Ministry of Finance, Govt. of India on the Economic Survey

2012-13.

Nodal agency for facilitating wide dissemination of converged accounting standards.

Implementation of an Accrual Based Double Entry Accounting System in Kerala State

Insurance Department (KSID)……

Cont…

INPUTS ON ACCRUAL ACCOUNTING

Provided to:

Staff in the Postal Accounts Offices in PAN India basis

Officials of Municipal Corporation Greater Mumbai

Govt. officials of UT of Lakshadweep

Officials of Agartala Muncipal Council, Tripura

Officials of Kohima and Dimapur Muncipal Council, Nagaland

Officials of Finance Department, Govt. of Mizoram

Officials of Employees of State Insurance Corporation (ESIC)

Officials of Survey of India, Hyderabad…

Cont…

TRAINING PROGRAMES

Joint State Summit with Centre for Taxation Studies, Govt. of Kerala

Officials of the Dept. of PE, Ministry of Heavy Industries & Public Enterprises

Vat officials of Trade & Taxes Department of Government of Delhi

Senior officers of C&AG of India

Officers of Superintendent of taxes, Govt. of Mizoram

Officials of Survey of India, Officers of Public Enterprises Department, Govt. of Assam and Officials of Finance

Dept., Govt. of Tamil Nadu

State level Public Enterprises (SLPES) of Andhra Pradesh/ Madhya Pradesh/ Himachal Pradesh/ Karnataka

Panchayat Secretaries

Autonomous Bodies….

Thrust Areas of the State Level Task Force

Identify departments of state in which single accounting system is followed and suggest

govt. to change it into double accounting system.

To find effective ways to reduce cost of finance and study of AOA/MOA of all PSU’s in the

state.

To understand the debt management policy of State govt., including refinancing of existing

debts and to give suggestions whatever necessary.

To increase the revenue of the state by maximum utilization of resources available in the

state.

To help in Budgetary Control Framework.

To help in development of Accounting Manual.

To help in Reforms and Control over Public Finance & Government Accounting

Mechanism.

To help in Conversion from Cash to Accrual Accounting

Thank You