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Implementing the GFSM 2001 System: Migration Paths & Experiences

Implementing the GFSM 2001 System: Migration Paths & Experiences. Government Finance Division Statistics Department IMF. Contents of Lecture. Introduction Factors to take into account for migration path Alternative bases of accounting

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Implementing the GFSM 2001 System: Migration Paths & Experiences

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  1. Implementing the GFSM 2001 System:Migration Paths & Experiences Government Finance Division Statistics Department IMF

  2. Contents of Lecture • Introduction • Factors to take into account for migration path • Alternative bases of accounting • Country-specific steps needed in development of migration path • Possible migration paths • Migration experiences • May be different from country to country • May be different from institution to institution Government Finance Division, IMF Statistics Department

  3. Introduction(1/2) • Implementation of fully integrated GFS system will • Take time and resources • Need to progress at pace determined by differing needs and circumstances of country involved • Governments of most countries will need to revise their underlying accounting systems to reflect • Accrual accounting principles; and • Classifications of GFS system Government Finance Division, IMF Statistics Department

  4. Alternative Bases of Accounting(2/2) • A wide spectrum exists • For illustrative purposes - consider four points on that spectrum • Cash basis • Modified cash basis • Modified accrual basis • Full accrual basis Cash basis Bases between cash and full accrual Full accrual Government Finance Division, IMF Statistics Department

  5. Development of a Migration Path(1/7) • Six possible development stages • Conviction stage • Political stage • Planning stage • Application stage • Legislation stage • Implementation stage • Accounting systems • Staff resources • User education Government Finance Division, IMF Statistics Department

  6. Development of a Migration Path(2/7) • Conviction stage • What is existing system? • GFSM 1986 format? Budget format? • Shortcomings? • What are needs / advantages for country to migrate to GFSM 2001 system? • Improvements in government’s policy decisions? • Improvements in accountability? • Greater transparency? • Better economic analysis? • Comparability and consistency • What are international demands? • International organizations? Accounting bodies? Government Finance Division, IMF Statistics Department

  7. Development of a Migration Path(3/7) • Political stage • Adequate preparation • To achieve further success • Political will? • Possible country-specific factors • Balancing items may seem to deteriorate • Debt position • Misinterpretation • Emphasize that GFSM 2001 provides much improved measures of long term government performance • Resistance to change Government Finance Division, IMF Statistics Department

  8. Development of a Migration Path(4/7) • Planning stage • Need a detailed action plan • Spanning several years • Maintain data collection and compilation • Historic links • Parallel runs • Cooperation between institutions imperative • Committee representing all relevant institutions and agencies • Task forces • Working groups • Project and time schedules Government Finance Division, IMF Statistics Department

  9. Development of a Migration Path(5/7) • Application stage • Coverage of units and expense accounts • Choose a recent year’s data; identify government institutional units; rearrange expenditure items and identify accrual items • Revenue accounts • Assets and liabilities accounts • Other aspects • Presentation and legal aspects • Project results, training, etc. • Technical aspects Government Finance Division, IMF Statistics Department

  10. Development of a Migration Path(6/7) • Legislation stage • New legal framework that includes • Timeframe for development stages • Assessment of effects on government accounts • Could include reporting requirements and assignment of responsibilities Government Finance Division, IMF Statistics Department

  11. Development of a Migration Path(7/7) • Implementation stage • Depend on migration path • A finite task with definite and specific objectives • Flexibility to adjust • Accommodate new developments as they occur • Change classifications in cash accounting system to the GFSM 2001 framework • Estimate noncash items, e.g., grants in kind, other payments in kind • Adjust time of recording of flows, e.g., interest • Add consumption of fixed capital to Statement of Government Operations • Obtain partial data on holding gains (revaluations) and other economic flows, e.g., foreign loans, debt write-off Government Finance Division, IMF Statistics Department

  12. Government Finance Division, IMF Statistics Department

  13. Number of Countries Reporting Data for the GFSY in GFSM 2001 FormatSource: Government Finance Statistics Yearbook Source: Government Finance Statistics Yearbook Government Finance Division, IMF Statistics Department

  14. Number of Countries Reporting Data on Assets and Liabilities Source: Government Finance Statistics Yearbook Government Finance Division, IMF Statistics Department

  15. GFS Reporting by Country Source: Government Finance Statistics Yearbook 2012 Government Finance Division, IMF Statistics Department

  16. Government Finance Division, IMF Statistics Department

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