Building blocks to better PFM – A cash to accruals accounting toolkit
ICAEW has today (9 June 2017) published a new framework guidance document Building blocks to better PFM - A cash to accruals accounting toolkit as part of its Better Government Series.
Using generally accepted tools and standards of project management we created this practical ‘how to’ guide which brings together information that is relevant to the implementation of large projects. The toolkit sets out six practical ‘building blocks’ as the foundation to improve the quality of their financial reporting and public financial management.
The Building Blocks
Structures and ownership - the political and wider organisational and leadership structures that need to be in place to deliver the change.
Strategy - effective prioritised plan to deliver the change, manage critical dependencies and risks and to ensure staff and stakeholders understand what is required of them and when.
Project delivery - setting up the project team and running the project with appropriate governance and oversight.
People and resources - the right people, with the right skills, knowledge and approach to drive the reforms supported by adequate resources. We discuss how capacity can be built and strengthened in developing countries and emerging economies.
Standards and policies - the standards in accordance with which accounts will be produced, the process for setting them and the policies that will be adopted.
Systems and processes - putting in place the right infrastructure, corporate governance and business processes to enable high quality information to be provided so policymakers can make the right decisions to achieve the right outcomes.
Who is the cash to accruals toolkit for?
The toolkit is intended for government entities that have made the decision to implement accruals accounting, including potential sponsors of a project and all those charged with delivery of such a project. It is also a useful guide for policymakers, standard setters, senior administrative officials, auditors or regulators who will have some involvement in the project. It is relevant to countries whose governments are still planning their transition as well as those already part-way through the process.