Task Force on International Task Force on International Public Accounts StandardsPublic Accounts Standards

OECD National Accounts Experts OECD National Accounts Experts meeting, Parismeeting, ParisOctober, 2003October, 2003

Lucie LalibertéLucie LalibertéStatistics DepartmentStatistics Department

International Monetary FundInternational Monetary Fund

Worldwide trend toward greater accountability and Worldwide trend toward greater accountability and transparency in transparency in government financesgovernment finances::

1993 SNA/ ESA 95 1993 SNA/ ESA 95 isis the umbrella standard for macroeconomic the umbrella standard for macroeconomic statistics, of which statistics, of which Government Finance Statistics 2001 (GFSM Government Finance Statistics 2001 (GFSM 2001). 2001). Statistical standards are being updated.Statistical standards are being updated.

As there are no authoritative accounting sector for the public sector, As there are no authoritative accounting sector for the public sector, the International Federation of Accountants Public Sector the International Federation of Accountants Public Sector Committee (IFAC PSC) has issued as of September 2003 21 Committee (IFAC PSC) has issued as of September 2003 21 standards for public accounting. standards for public accounting.

In response to rising concerns by users who are experiencing In response to rising concerns by users who are experiencing difficulties in understanding and reconciling the macro (statistical) difficulties in understanding and reconciling the macro (statistical) and micro (public accounting), an international project was launched and micro (public accounting), an international project was launched in 2003 for the greater harmonization between statistical and public in 2003 for the greater harmonization between statistical and public accounting systems at this critical juncture of both systems being accounting systems at this critical juncture of both systems being under review. under review.

International Public Sector International Public Sector Accounting Standards (IPSAS)Accounting Standards (IPSAS)

Aim of IPSAS is to improve public sector financial Aim of IPSAS is to improve public sector financial management and accountability and their adoption by management and accountability and their adoption by governments governments

21 IPSAS issued by IFAC PSC (20 standards on the 21 IPSAS issued by IFAC PSC (20 standards on the accrual basis of accounting and one on the cash basis)accrual basis of accounting and one on the cash basis)

Harmonized with the International Accouting Standards Harmonized with the International Accouting Standards (IASs)/International Financial Reporting Standards (IASs)/International Financial Reporting Standards (IFRSs) issued by the International Accounting (IFRSs) issued by the International Accounting Standards Board (IASB)Standards Board (IASB)

Project for further harmonization of Project for further harmonization of public sector accountingpublic sector accounting

A follow up to:A follow up to:

February 2003 OECD Annual Accruals Symposium in February 2003 OECD Annual Accruals Symposium in ParisParisJune 2003 GFS/1993 SNA/ESA 95/IPSAS June 2003 GFS/1993 SNA/ESA 95/IPSAS Convergence Working Group meeting in WashingtonConvergence Working Group meeting in WashingtonOctober 2003 Steering Committee on a Task Force October 2003 Steering Committee on a Task Force on International Public Accounts in Parison International Public Accounts in Paris

Steering Committee on Task Force Steering Committee on Task Force on International Public Accountson International Public Accounts

Composed of IMF, OECD, Eurostat, European Composed of IMF, OECD, Eurostat, European Central Bank, IFAC, IASB together with Central Bank, IFAC, IASB together with individual countriesindividual countries

Identified detailed lists of differencesIdentified detailed lists of differences– between IPASs and GFS between IPASs and GFS – among 1993 SNA, ESA 95 and GFS among 1993 SNA, ESA 95 and GFS

Prioritized these differences for submission to Prioritized these differences for submission to the Task Force.the Task Force.

Task Force on International Public Task Force on International Public Sector Accounting (TFIPSA)Sector Accounting (TFIPSA)

Aim: Study the feasibility of harmonizing Aim: Study the feasibility of harmonizing differences in international statistical differences in international statistical standards and government accounting.standards and government accounting.

Outputs:Outputs:– Establish list of government related issues for Establish list of government related issues for

ISWGNA consideration in updating ISWGNA consideration in updating 1993 SNA1993 SNA– Establish a list to encourage harmonization Establish a list to encourage harmonization

between IPSAS and GFS for consideration by between IPSAS and GFS for consideration by the PSC and the PSC and GFSM 2001GFSM 2001

Organizational Structure of TFIPSAOrganizational Structure of TFIPSA

Chaired by the IMF, with OECD SecretariatChaired by the IMF, with OECD Secretariat

Two Working Groups:Two Working Groups:– one focusing on data sources (IPSAS/GFS) led by PSC, one focusing on data sources (IPSAS/GFS) led by PSC, – one focusing on statistical outputs (GFS/1993 SNA/ESA 95) led one focusing on statistical outputs (GFS/1993 SNA/ESA 95) led

by the OECD.by the OECD.

Composition: National macroeconomic statisticians and Composition: National macroeconomic statisticians and public accountants as well as standard setters and public accountants as well as standard setters and international/supranational organizations. international/supranational organizations.

Schedule of meetings:Schedule of meetings:– February 2004February 2004– February 2005February 2005

ConvergenceConvergence

The International Task Force has been The International Task Force has been recognised as an ISWGNA task Forcerecognised as an ISWGNA task Force

A first list of possible clarifications/changes A first list of possible clarifications/changes needed in the SNA for convergence has needed in the SNA for convergence has been forwarded to the ISWGNAbeen forwarded to the ISWGNA

Objective: draft a special Annex / chapter Objective: draft a special Annex / chapter of the SNA on general government of the SNA on general government accountsaccounts

Issues for discussionIssues for discussion

Five issues for discussion in 2004Five issues for discussion in 2004– Capital injection / super dividendsCapital injection / super dividends– Privatisation / restructuring agencies / securitisationPrivatisation / restructuring agencies / securitisation– Guarantee / contingent assets / provisions / Guarantee / contingent assets / provisions /

constructive obligationsconstructive obligations– Public / private delineationPublic / private delineation– Tax revenue / tax credits / uncollectable taxTax revenue / tax credits / uncollectable tax

In the mandate, the inclusion in this annex of the In the mandate, the inclusion in this annex of the issues discussed in the European « Manual on issues discussed in the European « Manual on Government Deficit and Debt ».Government Deficit and Debt ».

Next stepsNext steps

The task force will be invited by the OECD Accrual The task force will be invited by the OECD Accrual Symposium (network of Senior Budget Officials) to Symposium (network of Senior Budget Officials) to present its first resultspresent its first resultsMeeting 9-10-11 February 2004Meeting 9-10-11 February 2004Experts on general government from national accounts Experts on general government from national accounts will be invited will be invited Draft agenda: Draft agenda: – Discussions on the set of priority items for convergenceDiscussions on the set of priority items for convergence– Comparability of general government perimeter (universities, Comparability of general government perimeter (universities,

hospitals, local energy and transport enterprises,...). hospitals, local energy and transport enterprises,...). – Exchange on the use of the databases developed by the Exchange on the use of the databases developed by the

different international standardsdifferent international standards

ConclusionConclusion

This is a priority program in the view of the This is a priority program in the view of the Statistics Directorate of the OECD:Statistics Directorate of the OECD:Objective: serve our main users (macro-Objective: serve our main users (macro-economists inside and outside the OECD) by economists inside and outside the OECD) by enhancing the relevance and the comparability enhancing the relevance and the comparability of the national accounts data on general of the national accounts data on general government.government.Means: international task force, national Means: international task force, national accounts meetings, consultations of member accounts meetings, consultations of member countries, and practical recommendations for countries, and practical recommendations for implementationimplementation