Spoor eGovernment - Steunpunt Bestuurlijke Organisatie
Transcription
Spoor eGovernment - Steunpunt Bestuurlijke Organisatie
K.U.LEUVEN Universiteitsplein 1 B-2610 Wilrijk Prof.dr Ria Janvier Tel: 0032 3 820 28 72 Fax: 0032 3 820 28 82 E-mail: [email protected] Website: www.ua.ac.be/psw E. Van Evenstraat 2A B-3000 Leuven Prof.dr Annie Hondeghem Algemeen coördinator: Prof.dr Geert Bouckaert Tel: 0032 16 32 32 70 Fax: 0032 16 32 32 67 E-mail: [email protected] Website: www.instituutvoordeoverheid.be Voskenslaan 270 B-9000 Gent Prof. dr Filip De Rynck Tel: 0032 9 242 42 07 Fax: 0032 9 243 87 96 E-mail: [email protected] Website : habe.hogent.be Sint-Pietersnieuwstraat 25 B-9000 Gent Prof. dr Hans Waege Tel: 0032 9 264 31 11 Fax: 0032 9 264 69 85 E-mail: [email protected] Website: www.psw.rug.ac.be/popmeth Algemeen secretariaat Steunpunt beleidsrelevant onderzoek BESTUURLIJKE ORGANISATIE VLAANDEREN E. Van Evenstraat 2 C - B-3000 Leuven - BELGIE Tel: 0032 16 32 36 10 - Fax: 0032 16 32 36 11 E-mail: [email protected] www.steunpuntbov.be D/2004/10106/022 Steunpunt beleidsrelevant onderzoek - Bestuurlijke organisatie Vlaanderen Niets uit deze uitgave mag, zelfs gedeeltelijk, openbaar gemaakt worden, gereproduceerd, vertaald of aangepast, onder enige vorm ook, hierin begrepen fotokopie, microfilm, bandopname behoudens uitdrukkelijke en voorafgaande toestemming van de uitgever. Spoor Financieel Management INTERNATIONALE TRENDS IN DE MODERNISERING VAN DE OVERHEIDSBOEKHOUDING Bram Scheers Prof. dr Geert Bouckaert Rapport D/2004/10106/022 2003 TEL: 0032 16 32 36 10 Algemeen secretariaat - Steunpunt Beleidsrelevant onderzoek BESTUURLIJKE ORGANISATIE VLAANDEREN E. VAN EVENSTRAAT 2 C - B-3000 LEUVEN – BELGIE FAX: 0032 16 32 36 11 E-mail: [email protected] www.steunpuntbov.be Internationale trends in de modernisering van de overheidsboekhouding ABSTRACT In heel wat OESO-landen is er een evolutie merkbaar met betrekking tot de boekhouding. Het kas- en verplichtingenstelsel voldoet niet meer aan de hedendaagse realiteit waarin resultaatgericht management een grote rol speelt. Er is dan ook een evolutie merkbaar naar boekhoudsystemen die niet enkel de kasstromen en de verplichtingen registreren, maar ook de opbrengsten en de kosten. De doelstelling van dit rapport is een stand van zaken te geven van de hervormingen inzake het overheidsboekhouden in een selectie van OESO-landen (Australië, Canada, Nederland, het Verenigd Koninkrijk, de Verenigde Staten en Zweden). Hierbij wordt zowel gefocust op de boekhoudhervormingen zelf (boekhoudfuncties, -procedures en –formattering) als op de implementatiestrategie die werd of wordt gevolgd bij het invoeren ervan. Uit deze gedetailleerde landeninformatie worden dan algemene trends opgemaakt om aldus Vlaanderen te kunnen positioneren in de internationale context. De bepalingen in verband met de boekhouding in het voorontwerp van comptabiliteitsdecreet sluiten nauw aan bij deze die we internationaal waarnemen. Er kunnen dan ook lessen worden getrokken uit de buitenlandse cases om de implementatie ervan zo efficiënt en effectief mogelijk te laten verlopen. Bram Scheers I Internationale trends in de modernisering van de overheidsboekhouding INHOUDSTAFEL HOOFDSTUK 1 INLEIDING _______________________________________________ 1 1.1. ONDERZOEKSVRAGEN ___________________________________________ 1 1.2. METHODOLOGIE ________________________________________________ 2 1.3. ANALYTISCH RAAMWERK _______________________________________ 2 1.4. STRUCTUUR VAN HET RAPPORT__________________________________ 4 BRONNEN EN VERWIJZINGEN __________________________________________ 4 HOOFDSTUK 2 AUSTRALIA_______________________________________________ 7 2.1. DESCRIPTION OF THE ACCOUNTING REFORMS ___________________ 7 2.1.1. Accounting functions ____________________________________________ 7 2.1.1.1. Historical overview of the reforms ______________________________ 7 2.1.1.2. Actors involved in the reforms _________________________________ 8 2.1.1.3. Pretext of the reforms ________________________________________ 9 2.1.1.4. Objectives of the reforms _____________________________________ 9 2.1.1.5. Conclusion: functions of the reforms ____________________________ 9 2.1.2. Accounting procedures __________________________________________ 10 2.1.2.1. Accounting legislation and standards ___________________________ 10 2.1.2.2. Valuation rules ____________________________________________ 11 2.1.2.3. Most important actors _______________________________________ 11 2.1.2.4. Required reports ___________________________________________ 11 2.1.3. Accounting format______________________________________________ 12 2.1.3.1. Cash or accrual accounting? __________________________________ 12 2.1.3.2. Format of the annual report___________________________________ 12 2.1.3.3. Format of the financial statements _____________________________ 13 2.1.3.4. Time horizon ______________________________________________ 14 2.1.3.5. Consolidation _____________________________________________ 14 2.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 15 2.2.1. General ______________________________________________________ 15 2.2.2. Critical success and failure factors _________________________________ 15 REFERENCE LIST _____________________________________________________ 16 APPPENDIX: EXTRACTS FROM ILLUSTRATIVE FINANCIAL STATEMENTS _______________________________________________________________________ 17 HOOFDSTUK 3 CANADA ________________________________________________ 25 3.1. DESCRIPTION OF THE ACCOUNTING REFORMS __________________ 25 3.1.1. Accounting functions ___________________________________________ 25 3.1.1.1. Historical overview of the reforms _____________________________ 25 3.1.1.2. Actors involved in the reforms ________________________________ 26 3.1.1.3. Pretext of the reforms _______________________________________ 27 3.1.1.4. Objectives of the reforms ____________________________________ 27 3.1.1.5. Conclusion: functions of the reforms ___________________________ 27 3.1.2. Accounting procedures __________________________________________ 28 3.1.2.1. Accounting legislation and standards ___________________________ 28 3.1.2.2. Valuation rules ____________________________________________ 28 Bram Scheers III Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 3.1.2.3. Most important actors _______________________________________ 29 3.1.2.4. Required reports ___________________________________________ 29 3.1.3. Accounting format______________________________________________ 29 3.1.3.1. Cash or accrual accounting? __________________________________ 29 3.1.3.2. Format of the annual report___________________________________ 29 3.1.3.3. Format of the financial statements _____________________________ 30 3.1.3.4. Time horizon ______________________________________________ 31 3.1.3.5. Consolidation _____________________________________________ 31 3.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 32 REFERENCE LIST _____________________________________________________ 33 APPENDIX: TEMPLATES OF THE MANDATORY FINANCIAL TABLES_____ 34 HOOFDSTUK 4 THE NETHERLANDS _____________________________________ 39 4.1. DESCRIPTION OF THE ACCOUNTING REFORMS __________________ 39 4.1.1. Accounting functions ___________________________________________ 39 4.1.1.1. Historical overview of the reforms _____________________________ 39 4.1.1.2. Actors involved in the reforms ________________________________ 40 4.1.1.3. Pretext of the reforms _______________________________________ 41 4.1.1.4. Objectives of the reforms ____________________________________ 42 4.1.1.5. Conclusion: functions of the reforms ___________________________ 42 4.1.2. Accounting procedures __________________________________________ 42 4.1.2.1. Accounting legislation and standards ___________________________ 42 4.1.2.2. Valuation rules ____________________________________________ 43 4.1.2.3. Most important actors _______________________________________ 43 4.1.2.4. Required reports ___________________________________________ 43 4.1.3. Accounting format______________________________________________ 44 4.1.3.1. Cash or accrual accounting? __________________________________ 44 4.1.3.2. Format of the annual report___________________________________ 44 4.1.3.3. Format of the financial statements _____________________________ 44 4.1.3.4. Time horizon ______________________________________________ 45 4.1.3.5. Consolidation _____________________________________________ 45 4.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 46 REFERENCE LIST _____________________________________________________ 47 APPENDIX: EXTRACTS FROM THE FINANCIAL STATEMENTS 2002 OF THE MINISTRY OF ECONOMIC AFFAIRS ____________________________________ 49 HOOFDSTUK 5 SWEDEN ________________________________________________ 51 5.1. DESCRIPTION OF THE ACCOUNTING REFORMS __________________ 51 5.1.1. Accounting functions ___________________________________________ 51 5.1.1.1. Historical overview of the reforms _____________________________ 51 5.1.1.2. Actors involved in the reforms ________________________________ 51 5.1.1.3. Pretext of the reforms _______________________________________ 53 5.1.1.4. Objectives of the reforms ____________________________________ 53 5.1.1.5. Conclusion: functions of the reforms ___________________________ 53 5.1.2. Accounting procedures __________________________________________ 53 5.1.2.1. Accounting legislation and standards ___________________________ 53 5.1.2.2. Valuation rules ____________________________________________ 54 5.1.2.3. Most important actors _______________________________________ 54 Spoor financieel management IV Internationale trends in de modernisering van de overheidsboekhouding 5.1.2.4. Required reports ___________________________________________ 55 5.1.3. Accounting format______________________________________________ 56 5.1.3.1. Cash or accrual accounting? __________________________________ 56 5.1.3.2. Format of the annual report___________________________________ 56 5.1.3.3. Format of the financial statements _____________________________ 56 5.1.3.4. Time horizon ______________________________________________ 57 5.1.3.5. Consolidation _____________________________________________ 57 5.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 57 REFERENCE LIST _____________________________________________________ 58 APPENDIX: EXTRACTS FROM THE ESV 2002 FINANCIAL STATEMENTS __ 60 HOOFDSTUK 6 UNITED KINGDOM _______________________________________ 63 6.1. DESCRIPTION OF THE ACCOUNTING REFORMS __________________ 63 6.1.1. Accounting functions ___________________________________________ 63 6.1.1.1. Historical overview of the reforms _____________________________ 63 6.1.1.2. Actors involved in the reforms ________________________________ 63 6.1.1.3. Pretext of the reforms _______________________________________ 65 6.1.1.4. Objectives of the reforms ____________________________________ 65 6.1.1.5. Conclusion: functions of the reforms ___________________________ 65 6.1.2. Accounting procedures __________________________________________ 66 6.1.2.1. Accounting legislation and standards ___________________________ 66 6.1.2.2. Valuation rules ____________________________________________ 67 6.1.2.3. Most important actors _______________________________________ 67 6.1.2.4. Required reports ___________________________________________ 68 6.1.3. Accounting format______________________________________________ 68 6.1.3.1. Cash or accrual accounting? __________________________________ 69 6.1.3.2. Format of the annual report and accounts of departments ___________ 70 6.1.3.3. Format of the department financial statements ____________________ 70 6.1.3.4. Time horizon ______________________________________________ 71 6.1.3.5. Consolidation _____________________________________________ 71 6.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 72 6.2.1. General ______________________________________________________ 72 6.2.2. Critical success and failure factors _________________________________ 73 REFERENCE LIST _____________________________________________________ 75 APPENDIX: EXTRACTS FROM THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF CULTURE, MEDIA AND SPORT _______________________ 76 HOOFDSTUK 7 UNITED STATES _________________________________________ 79 7.1. DESCRIPTION OF THE ACCOUNTING REFORMS __________________ 79 7.1.1. Accounting Functions ___________________________________________ 79 7.1.1.1. Historical overview of the reforms _____________________________ 79 7.1.1.2. Actors involved in the reforms ________________________________ 80 7.1.1.3. Pretext of the reforms _______________________________________ 82 7.1.1.4. Objectives of the reforms ____________________________________ 82 7.1.1.5. Conclusion: functions of the reforms ___________________________ 83 7.1.2. Accounting procedures __________________________________________ 83 7.1.2.1. Accounting legislation and standards ___________________________ 83 7.1.2.2. Valuation rules ____________________________________________ 84 Bram Scheers V Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 7.1.2.3. Most important actors _______________________________________ 84 7.1.2.4. Required reports ___________________________________________ 85 7.1.3. Accounting format______________________________________________ 85 7.1.3.1. Cash or accrual accounting? __________________________________ 85 7.1.3.2. Format of the annual report___________________________________ 85 7.1.3.3. Format of the financial statements _____________________________ 86 7.1.3.4. Time horizon ______________________________________________ 87 7.1.3.5. Consolidation _____________________________________________ 87 7.2. IMPLEMENTATION STRATEGY OF THE REFORMS________________ 88 REFERENCE LIST _____________________________________________________ 89 APPENDIX: EXTRACTS FROM ILLUSTRATIVE FINANCIAL STATEMENTS 91 HOOFDSTUK 8 CONCLUSIE: SITUERING VLAANDEREN IN EEN INTERNATIONALE CONTEXT _____________________________________________ 97 8.1. BOEKHOUDFUNCTIES ___________________________________________ 97 8.1.1. Historiek van de hervormingen ____________________________________ 98 8.1.2. Actoren _____________________________________________________ 100 8.1.3. Aanleiding voor de boekhoudhervormingen_________________________ 101 8.1.4. Doelstellingen van de boekhoudhervormingen_______________________ 101 8.2. BOEKHOUDPROCEDURES ______________________________________ 101 8.2.1. Regelgeving en boekhoudnormen_________________________________ 103 8.2.2. Waarderingsregels_____________________________________________ 104 8.2.3. Belangrijkste actoren in het boekhoudproces ________________________ 104 8.2.4. Vereiste rapporten _____________________________________________ 105 8.3. FORMATTERING VAN DE BOEKHOUDING _______________________ 106 8.3.1. Kas of accrual boekhouding? ____________________________________ 107 8.3.2. Inhoud van het jaarrapport ______________________________________ 108 8.3.3. Formattering van de financiële rekeningen__________________________ 108 8.3.4. Tijdshorizon _________________________________________________ 109 8.3.5. Consolidatie__________________________________________________ 109 8.4. IMPLEMENTATIESTRATEGIE VAN DE HERVORMINGEN _________ 110 8.5. VERBAND BOEKHOUDSYSTEMEN EN PRESTATIEMEETSYSTEMEN 112 8.5.1. Functies _____________________________________________________ 112 8.5.2. Procedures ___________________________________________________ 113 8.5.3. Formattering _________________________________________________ 115 Spoor financieel management VI Hoofdstuk 1: Inleiding HOOFDSTUK 1 INLEIDING 1.1. ONDERZOEKSVRAGEN Dit rapport behandelt het tweede component van de financiële cyclus, namelijk de boekhouding. Na de beschrijving van de begrotingshervormingen in het eerste onderzoeksjaar, stonden de boekhoudhervormingen op de agenda van 2003. Ter verduidelijking van het onderzoeksopzet worden de verschillende dimensies van het beschrijvend luik van het onderzoek binnen het spoor financieel management hier nogmaals schematisch geïllustreerd (Scheers, Sterck, Van Reeth, and Bouckaert, 2002 pp.12): planning begroting F 2002 I I 2003 F P III I F P audit 2004 F I P financiële cyclus P monitoring boekhouding F I I II P evaluatie F I P beleids- en beheerscyclus Figuur 1.1 - De onderzoeksdimensies van het beschrijvend luik. De onderzoeksvraag die in dit rapport wordt behandeld betreft de interne consistentie van de boekhoudsystemen (nummer I in de figuur): - wat zijn de dominante boekhoudfuncties (symbool F)? - volgens welke procedures verloopt het boekhoudproces (symbool P)? - wat is de informatie-inhoud of formattering van de rapporteringsdocumenten (symbool I)? - in welke mate zijn de boekhoudfuncties (F), de boekhoudprocedures (P) en de formattering (I) van de rapporten op mekaar afgestemd? De focus van dit rapport is enkel gericht op de boekhouding. Facetten als interne controle, interne audit en externe controle komen volgend jaar aan bod. Deze facetten worden immers beschouwd als componenten van de controlecyclus of het auditproces. Het betreft dus het Bram Scheers 1 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen boekhoudproces in enge zin. Het component monitoring (nummer II in de figuur) van de beleids- en beheerscyclus wordt behandeld in een verwant onderzoeksrapport (Sterck and Bouckaert, 2003). De samenhang tussen de boekhouding en monitoring (nummer III) komt onder andere oppervlakkig aan bod bij de bespreking van de variabele ‘inhoud van het jaarrapport’ (zie verder). Daarin wordt kort geschetst hoe de niet-financiële en de financiële informatie al dan niet met elkaar zijn geïntegreerd. Bovendien wordt er ter afsluiting van dit rapport een overzicht gegeven van het verband, de gemeenschappelijke punten en de verschilpunten tussen de boekhoud- en prestatiemeetsystemen. Een bijkomende onderzoeksvraag die wordt bekeken, slaat op de strategie die wordt gevolgd bij de implementatie van de hervormingen. Hoe en door wie worden de hervormingen aangestuurd? Worden er organisatorische, budgettaire of wetgevingsaanpassingen gerealiseerd voor de invoering van het nieuwe systeem? … Deze onderzoeksvragen kunnen het huidige veranderingsproces in de Vlaamse overheid ondersteunen. De toekomstige Vlaamse comptabiliteit is momenteel uitgetekend in het voorontwerp van comptabiliteitsdecreet. Er dienen echter nog heel wat concrete vragen te worden beantwoord: - welk financieel systeem is betrouwbaar en in staat de vereiste informatie te leveren? - hoe zullen het rekeningenstelsel en boekhoudplan er concreet uitzien? - volgens welk model zal de analytische boekhouding worden uitgebouwd? - welke analytische informatie dient ter beschikking te zijn? - hoe kan de mindsetting van de mensen die er mee werken worden veranderd? - hoe kan de implementatie zo efficiënt en effectief mogelijk gebeuren? Deze implementatievragen voor Vlaanderen kunnen worden verbonden met de onderzoeksvragen uit het internationaal vergelijkend onderzoek. Op die manier kunnen de bevindingen en resultaten van het onderzoek een set van mogelijke antwoorden op de vragen vormen, op basis waarvan aanbevelingen voor de implementatie van de hervormingen in Vlaanderen geformuleerd kunnen worden. 1.2. METHODOLOGIE Net zoals bij het onderzoek omtrent de begroting en planning betreft het onderzoek naar de boekhouding een internationale vergelijking van de hervormingen in een aantal pilootlanden van de OESO. De landen zijn Australië, Canada, Nederland, het Verenigd Koninkrijk, de Verenigde Staten en Zweden. De bevindingen van deze beschrijvende fase van het onderzoek werden voornamelijk gebaseerd op de analyse van secundaire bronnen. Op basis daarvan worden een aantal landen geselecteerd voor dewelke in een volgende fase een verklarend onderzoek naar de oorzaken van de vastgestelde bevindingen zal worden opgestart. 1.3. ANALYTISCH RAAMWERK Net zoals bij de begroting worden de boekhoudhervormingen beschreven aan de hand van de parameters functies, procedures en formattering. De modernisering van financiële systemen beïnvloedt immers zowel de functies van de financiële systemen, hun informatie-inhoud en formattering van de documenten, als de procedures waarmee sturings- en verantwoordingsrelaties worden gedefinieerd (Van Reeth and Bouckaert, 1997). Spoor financieel management 2 Hoofdstuk 1: Inleiding We beschouwen het boekhoudsysteem als een multifunctioneel systeem met verschillende, soms conflicterende gebruikswijzen. De boekhouding kan onder andere financiële informatie genereren voor: - het opvolgen van de begroting, - het ondersteunen van het beheer, - het ondersteunen van het beleid, - het ondersteunen van het macro-economische beleid, - het informeren van de allocatiebeslissingen, - het afleggen van verantwoording. De doelstelling van het boekhouden in se is het genereren van financiële informatie voor de gebruikers, waartoe onder andere de instelling zelf, de toezichthoudende overheid, het Parlement, de burger en de supranationale overheid behoren (Bouckaert and Van Nuffel, 2000). De financiële rapportage moet dus aan uiteenlopende eisen voldoen en zal naargelang de invalshoek een verschillende functie vervullen. Teneinde aan deze verschillende eisen tegemoet te komen, dient de boekhouding verschillende informatie te kunnen genereren. Welke boekhoudfuncties zijn permanent en welke functies worden hieraan toegevoegd? Aan de hand van de beschrijving van de historiek van de boekhoudinitiatieven, de rol van de initiatiefnemers, de aanleiding en de doelstellingen van de hervormingen wordt onderscheiden welke de evolutie is van de boekhoudfuncties en welke functies dominant zijn. Bij de beschrijving van de boekhoudprocedures wordt nagegaan in welke mate de hervormingen leiden tot een aanpassing in de boekhoudsystemen en tot wijzigingen in de rolverdeling van de betrokken actoren. Hiertoe worden volgende variabelen onderzocht: - de regelgeving en boekhoudnormen, - de waarderingsregels, - de belangrijkste actoren in het boekhoudproces, - de vereiste rapporten. De variabele ‘vereiste rapporten’ gaat na welke rapporten volgens de boekhoudprocedure moeten worden afgeleverd en op welk tijdstip. Er wordt echter niet ingegaan op de formattering van de rapporten. Dit komt aan bod bij de derde parameter: formattering van de boekhouding. Bij de internationale vergelijking van de boekhoudformatteringen worden de volgende variabelen gebruikt: - kas of accrual boekhouding, - inhoud van het jaarrapport, - formattering van de financiële rekeningen, - tijdshorizon, - consolidatie. De variabele ‘kas of accrual boekhouding’ slaat op het feit dat kas en accrual twee uitersten van een reeks mogelijke aanrekeningsbasissen voor een boekhouding zijn (Blöndal, 2003 pp.44). Een kasboekhouding is een boekhouding die enkel de kasstromen die in het boekjaar plaats vinden gaat registreren. Een accrual of bedrijfseconomische boekhouding gaat, analoog met wat in de private sector gebruikelijk is, boeken op transactiebasis en niet op kasbasis. Kosten, opbrengsten, schulden en vorderingen worden geboekt volgens het accrual accounting principe. Dit geeft een zo getrouw mogelijke weerspiegeling van de prestaties van de organisatie. Het kas- en verplichtingenstelsel is een tussenvorm die naast de zuivere kasstromen ook de verplichtingen gaat opvolgen. Ondanks het feit dat het ook een procedure- Bram Scheers 3 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen element is, wordt deze variabele bij de parameter formattering opgenomen omdat deze keuze de opmaak van de rekeningen visueel grondig verandert. Aan de hand van de rekeningen kan onmiddellijk worden gezien of ze opgemaakt zijn op basis van een kasboekhouding of op basis van een economische boekhouding. Zo is het belangrijkste financiële rapport van een kasboekhouding het overzicht van de kasstromen. Een accrual boekhouding daarentegen maakt het opmaken van een balans en resultatenrekening mogelijk. Het is ook belangrijk een onderscheid te maken tussen landen die het accrual stelsel enkel toepassen voor verslaggeving door individuele agentschappen en departementen en landen die het accrual stelsel eveneens gebruiken voor hun globale geconsolideerde overheidsboekhouding. Dit wordt bekeken onder de variabele ‘consolidatie’. Naast deze drie parameters ter beschrijving van de boekhoudhervormingen, wordt er ook telkens aandacht besteed aan de gevolgde implementatiestrategie. Net zoals bij de begrotingshervormingen wordt er onder andere gekeken naar de volgende variabelen: - aansturing van de hervorming: top-down of bottom-up, - organisatorische en financiële ondersteuning, - organisatorische dekkingsgraad: allomvattend of partieel, - uniformiteit van de hervormingsstrategie: systematisch of ad hoc, - ritme van de hervormingen: incrementeel of ‘big bang’, - wettelijke verankering van de hervorming: de jure of de facto. Voor de context van de hervormingen wordt verwezen naar het rapport over de begrotings- en planningshervormingen (Scheers et al., 2002). 1.4. STRUCTUUR VAN HET RAPPORT In dit rapport wordt een vergelijking gemaakt van de boekhoudsystemen en –hervormingen in Australië, Canada, Nederland, het Verenigd Koninkrijk, de Verenigde Staten en Zweden. Iedere landenstudie beslaat een hoofdstuk. Per landenstudie worden de parameters functies, procedures en formattering en de implementatiestrategie beschreven. De parameters worden verder opgedeeld in de hierboven beschreven variabelen. Dit zorgt voor een betere vergelijkbaarheid van de systemen en hervormingen over de landen heen. In het concluderend hoofdstuk worden de bevindingen van de landenstudies samengebracht om algemene trends te definiëren. Hierbij wordt Vlaanderen gepositioneerd ten opzichte van de geïdentificeerde internationale trends. Er wordt zowel rekening gehouden met de huidige Vlaamse situatie als met de toekomstige zoals uitgeschreven in het voorontwerp van comptabiliteitsdecreet. Ook wordt het verband tussen de boekhoudsystemen en de prestatiemeetsystemen verduidelijkt. BRONNEN EN VERWIJZINGEN Blöndal, J. R. (2003). Accrual accounting and budgeting: key issues and recent developments. OECD Journal on Budgeting, 3 (1): 43-59. Bouckaert, G. & Van Nuffel, L. (2000). Financieel overheidsmanagement: internationale tendensen van begroting, boekhouding en audit. Brugge: Die Keure Spoor financieel management 4 Hoofdstuk 1: Inleiding Scheers, B., Sterck, M., Van Reeth, W. & Bouckaert, G. (2002). Internationaal vergelijkend onderzoek naar de modernisering van de financiële cyclus en de beleids- en beheerscyclus: Begroting en planning. Leuven: Steunpunt Bestuurlijke Organisatie Vlaanderen , pp. 365. Sterck, M. & Bouckaert, G. (2003). Internationale trends in prestatiemeting bij de overheid. Leuven: Steunpunt Bestuurlijke Organisatie Vlaanderen, pp. 138. Van Reeth, W. & Bouckaert, G. (1997). Een financieel systeem voor de overheid: over stekkers en stopcontacten. Vlaams Tijdschrift voor Overheidsmanagement, 2 (4): 412. Bram Scheers 5 Hoofdstuk 2: Australia HOOFDSTUK 2 AUSTRALIA 2.1. DESCRIPTION OF THE ACCOUNTING REFORMS 2.1.1. Accounting functions 2.1.1.1. Historical overview of the reforms Initiative Period Objectives Financial Management Improvement Program (FMIP) 1983-1984 Accrual reporting for departments - 1995 (decision) 1998 (implemented) 1997 - De Commonwealth Authorities and Companies Act (CAC Act) De Financial Management and Accountability Act (FMA Act) De Auditor-General Act (AG Act) Charter of Budget Honesty Act 1997 - 1997 - 1998 - The establishment of the Department of Finance and Administration Accrual-based Outcomes & Outputs Budgeting and Reporting Framework 1998 - 1996 (decision) 1999-2000 (implemented) - The Australian Securities 2001 and Investments Commission Act - Devolution of responsibility, Running cost, Program management and budgeting, User charging, Contracting out, Corporate planning, Commercialisation. To obtain more informative, complete and accurate financial information To establish a single set of core requirements with respect to the financial, audit, corporate governance and accountability arrangements To draw up the regulatory, accounting and accountability framework for dealing with and managing the money and property of the Commonwealth To improve Commonwealth public sector administration and accountability To disclose any issues that might influence the actual budget outcome in future years in a Statement of Risks in each Economic and Fiscal Outlook Report, To increase the transparency of the fiscal projections. To integrate the authorities of finance and public management in one department To move to accrual-based accounting, budgeting and reporting, Delegation of the financial, performance and risk management towards the agencies, To increase the transparency of the government expenses by giving information about costs and results. To establish new institutional arrangements for setting Australian accounting standards Table 2.1 – Historical overview of the accounting reforms in the Commonwealth of Australia. Bram Scheers 7 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen The requirement to include accrual information in annual reports has existed for an extended period. Since 1983, all Commonwealth companies and statutory authorities have been required to prepare accounts on an accrual basis. Similarly, department business undertakings were expected to operate on the same basis. However, it was not until late 1992 than an announcement was made that all departments were to produce Accrual Financial Reporting (AFR). The policy instrument was by the introduction of three new pieces of legislation to replace the Audit Act 1901 (Guthrie, 1998 pp.8). Currently, the applicable legislation is thus the CAC Act, the FMA Act and the AG Act. 2.1.1.2. Actors involved in the reforms The following table gives an overview of the actors who play an important role in the achievement of the accounting reforms: Actor Role Australian Accounting Research Foundation (AARF) - Australian Accounting Standards Board (AASB) - Public Sector Accounting Standards Board (PSASB) Financial Reporting Council (FRC) - CPA Australia, Public Sector Centre of Excellence - - - Department of Finance and Administration (DOFA) - Joint Committee of Public Accounts and Audit (JCPAA) - Spoor financieel management To improve the quality of auditing and assurance services through the development of auditing and assurance standards and guidance To develop a conceptual framework, To make accounting standards, To participate in and contribute to the development of a single set of accounting standards for world-wide use. To review public sector practice and recommend changes To provide broad oversight of the process for setting accounting standards in Australia and to give the Minister reports and advice on that process To provide members and the community with advice on public sector financial management issues, To identify and report on emerging policy and compliance issues relating to public sector financial management, To provide a network which facilitates the development, exchange and distribution of valuable knowledge on key public sector financial management issues. To provide accounting policy advice, To improve government operations through the delivery of an efficient and effective financial framework (the accrual-based outcomes and outputs budgeting and reporting framework). To express a parliamentary desire to move to accrual-based accounting, budgeting and reporting, To publish reports on the progress of and recommendations concerning the accrual framework. 8 Hoofdstuk 2: Australia Australian National Audit Office (ANAO) - To encourage improved accounting and financial management practices that contribute to the efficient administrative processes, functioning and transparency of the public sector Table 2.2 - Actors involved in the accounting reforms in the Commonwealth of Australia. Different actors were involved in the accounting reforms. During the 1980s, AARF and associated standard settings boards, the AASB and PSASB, were promoting the idea of accrual-based General Purpose Financial Statements (GPFS) for both the public and the private sector. Thus, in Australia the accounting concepts were developed jointly by the public and private sector boards, with the clear aim that there should be no major divergences between the standards of the two sectors. PSASB was established by professional bodies and governments to review public sector practice and recommend changes. This body began to push for more complete financial statements by government entities (including operating or profit and loss statements, cash statements, and balance sheets with full disclosure of assets and liabilities). Along with Treasury departments the board was active in pursuing problems in public sector accounting such as asset valuation of public entities, provision for asset replacement, depreciation, and identification of liabilities. Various commissions of audit undertaken within Australian jurisdictions were also instrumental in promoting more business-like forms of accrual accounting (O'Faircheallaigh, Wanna, and Weller, 1999 pp.137). From 1 January 2001, PSASB and AASB have been put together in the reconstituted AASB by means of the legislation that established the new institutional arrangements for setting Australian accounting standards, the Australian Securities and Investments Commission Act 2001. Thus, the new AASB has responsibility for both private and public sector. 2.1.1.3. Pretext of the reforms The pretext of the accounting reforms is among other things the changed philosophy of government management. Governments operate in a more competitive environment, producing their goods and services in a contestable market. Areas of government that are not operating efficiently and effectively are subject to outsourcing or privatisation. In a contestable market, managers need to know the full cost and the full implications of their decisions for the bottom line, so the move to accrual accounting was essential (Miley, 1999). 2.1.1.4. Objectives of the reforms The introduction of accrual accounting had several objectives. It has been asserted that the adoption of accrual accounting will result in improved accountability by governments to their constituents, better financial management by public service managers and greater comparability of management performance between jurisdictions. 2.1.1.5. Conclusion: functions of the reforms In the Commonwealth of Australia, there is a long tradition concerning the use of accrual financial reporting. In order to make departments produce AFR three new pieces of legislation were introduced. The focus of the accounting reforms was the improvement of financial management by public service managers. The management function was and is thus a very important issue in the reforms. This is also why in Australia there is now one professional Bram Scheers 9 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen accounting standard-setter for both the public and the private sector and why the government follows the decisions of this independent standard-setter (Blöndal, 2003 pp.51). It was also the intention to increase the accountability, but the question is whether this is the case as most politicians do not understand the accrual-based reports. 2.1.2. Accounting procedures 2.1.2.1. Accounting legislation and standards The reporting requirements for the agencies are the following (Guthrie, 1998 pp.10): - Finance Minister’s Orders (FMOs), - Department of Finance Guidance Releases, - Australian Accounting Standards, - Statements of Accounting Concepts (SACs). The fact that the financial reporting requirements for Commonwealth agencies and authorities are contained in the FMOs is based on Schedule 1 under section 49 of the FMA Act and Schedule 1 under section 48 of the CAC Act. In Australia, it was the objective to have no major divergences between the private and the public sector. There are of course standards in the Australian suite that relate only to the public sector: AAS27 on Local Government, AAS29 on Departmental Accounting and AAS31 on the Whole of Government. They were written to deal with the transition from cash accounting to accrual accounting. AAS29 “Financial Reporting by Government Departments” was first issued in October 1996. For the first time, an accounting standard prescribed the form and content of general purposes financial reports of government departments. For departments this meant moving from cash to accrual accounting. However, the question arises as to whether there is a need at all for separate standards like these. There are now some inconsistencies and duplications between these standards and other standards and SACs. Furthermore there may be a requirement to provide additional guidance on some issues resulting from the recent introduction of Accrual Output Management in many jurisdictions. Therefore, AASB is currently reviewing the accounting standards which relate specifically to the public sector (Larsen, 2002). In addition to the FMOs, where necessary, additional guidance on the particular requirements of budget preparation, monthly or annual financial reporting have been provided under other guidance notes. A series of Finance Briefs is issued by the Accounting Centre of Excellence (ACE), which is a part of DOFA, to clarify issues not covered either by Accounting Standards or FMOs. AASB ensures that compliance with Australian accounting standards results in compliance with International Accounting Standards (IASs). In order to lead to the establishment of a set of high quality global accounting standards supported by national standard-setting bodies around the world, in 2001 the former International Accounting Standards Committee (IASC) was reconstituted as the International Accounting Standards Board (IASB). IASB does not have a role to set Public Sector specific standards. However, AASB wanted by means of Exposure Draft ED 102 “International Convergence and Harmonisation Policy” to be evenhanded concerning Private and Public Sector standard-setting. Hence ED 102 gives equal recognition to the need to harmonise AASB standards with not only IASB standards but also the IFAC Public Sector Committee (PSC) standards. The International Federation of Accountants (IFAC) is the international professional body of the accountancy profession. The PSC Standards Project, actioned in late 1996, is directed at developing International Public Spoor financieel management 10 Hoofdstuk 2: Australia Sector Accounting Standards (IPSASs) for financial reporting by public sector entities. These standards are based on the IASs promulgated by the IASC. AASB believes that the next phase of the PSC standard work program is of greater relevance. The PSC has identified a number of Public Sector issues not addressed or not adequately addressed by the IASs. It is recognized that there is a need to develop a framework for financial reporting by Public Sector entities to explicitly identify the underlying concepts adopted in the standard-setting process (Alfredson, 2001). The low level of Finance Ministry involvement in PSC does raise serious questions regarding the promulgation of the standards and their acceptance and credibility in OECD member countries. As a response, the Committee has formed various study groups on specific issues and has invited representatives from the Finance Ministries of member countries to be members of them (Blöndal, 2003 pp.51). 2.1.2.2. Valuation rules In the Commonwealth of Australia the used valuation rules are based on the fair value principle or the replacement cost. This is prescribed by DOFA and it is brought in progressively until 2005. 2.1.2.3. Most important actors In practice, accrual accounting results in changes to power relations within agencies and between agencies, generally in favour of financial managers, in part because it has increased the influence of accountants in government decision making (O'Faircheallaigh et al., 1999 pp.137). Thus the reform has, in part, led to a concentration of knowledge, technologies and skills in the hands of those trained in accounting. In the past five years, there has been an increase in the numbers of qualified accountants working within government agencies and an increasing recognition given to the role of the Chief Financial Officer at the same time. Although the latter was not even mentioned in the FMA Act of 1997, it has now become a senior management function and reports directly to the Secretary. DOFA maintains the central accounting and budget estimates system and produces monthly general government sector financial statements and the annual consolidated whole of government financial statements. ANAO publishes the “AMODEL Better Practice Guide” to assist Commonwealth entities in the preparation of their financial statements. The Guides provide examples of better practice in Commonwealth public sector financial reporting and disclosure. The disclosures indicated cover both mandatory requirements and better practice recommendations (Australian National Audit Office, 2003a). 2.1.2.4. Required reports Monthly reporting and annual reporting are integral to the Commonwealth’s accrual budgeting and reporting framework. Delivery of monthly financial statements, the final budget outcome and the consolidated financial statements (CFS) is required by legislation. The departments are thus obliged to prepare annual financial statements and reports based on accrual information. Section 49(1) of the FMA Act requires each agency Chief Executive to give to the Auditor-General the annual financial statements required by the Finance Minister’s Orders. Under section 55 of the FMA Act the minister of finance and administration is Bram Scheers 11 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen required to publish the CFS in a form consistent with the budget estimates of the financial year. A copy of each set of financial statements given to the Auditor-General and the AuditorGeneral’s report on them must be included in the agency’s annual report that is tabled in Parliament. All agencies within the general government sector operating under the FMA Act (1997) are required to produce an annual report by the Public Service Act (1999) (Australian National Audit Office, 2002 pp.42). The annual report must be given to the Minister responsible for the agency as soon as practicable after 30 June each year and, in any event, not later than six months after the reporting date. Annual reports are prepared in accordance with the “Requirements for Annual Reports” which are issued by the Department of the Prime Minister and Cabinet (PM&C) and approved on behalf of the Parliament by the Joint Committee of Public Accounts and Audit. 2.1.3. Accounting format 2.1.3.1. Cash or accrual accounting? In Australia, the departments use an accounting system which is accrual-based. The accrual systems have replaced cash-based accounting systems and they allow departments to know their total costs and better plan their financial needs over time periods of greater than one year. It is stated as follows in AAS 29 (Australian Accounting Research Foundation (AARF), 1998 pp.6): “The Standard requires the accrual basis of accounting to be adopted in the preparation of the general purpose financial reports of a government department. Accordingly, the assets, liabilities, revenues and expenses of a government department are required to be recognized in the reporting periods to which they relate regardless of when cash is received or paid.” 2.1.3.2. Format of the annual report Agency annual reports are the primary vehicle for reporting program performance, particularly effectiveness, to the Parliament and the public (Australian National Audit Office, 2002). A mandatory requirement is that annual reports include information on the outcome effectiveness and output price, quantity and quality performance information. As well, the performance information must relate to the outcome and output structure established in the relevant Portfolio Budget Statement (PBS). This performance information is, however, not audited. Moreover, the indicators are not very stable over time and there is often a disconnection between the performance information and the outcomes to achieve1. PM&C advised agencies that the annual report must include (Department of the Prime Minister and Cabinet, 2003 pp.6): - the reporting of actual results against outcomes and outputs and the specific performance information set out in the PBS / Portfolio Additional Estimate Statements (PAES), - performance information relevant to funds provided for purchaser/provider arrangements, - a concise narrative discussion and analysis of the detailed performance information at an appropriate level of reporting. 1 Based on interviews during our research visit to Australia. For more information about this visit see section “implementation strategy”. Spoor financieel management 12 Hoofdstuk 2: Australia As mentioned before, a copy of each set of financial statements given to the Auditor-General and the Auditor-General’s report on them must also be included in the agency’s annual report that is tabled in the Parliament. 2.1.3.3. Format of the financial statements The government department reporting entity is defined as follows (Australian Accounting Research Foundation (AARF), 1998 pp.6): “The standard requires government departments to prepare consolidated financial reports in accordance with Australian Accounting Standard AAS 24. This will enable users to obtain an overview of the performance, financial position and financing and investing activities of government departments. The standard also allows disaggregated reporting by government departments and recognizes that some individual entities that are included in the government department reporting entity may be reporting entities in their own right. In addition, the standard requires disclosure of items administered, but not controlled, by government departments since information about these items may be useful for assessing performance and accountability.” It is required that financial statements be prepared for: - the agency, - the economic entity, comprising the agency and its subsidiaries (if applicable), - each activity of an agency that is a ‘business operation’. At the Commonwealth of Australia, the accrual-based financial statements comprise the following (Australian National Audit Office, 2003a): - Statement by the chief executive and chief financial officer, Statement of financial performance, Statement of financial position, Statement of cash flows, Schedule of commitments, Schedule of contingencies, Schedule of administered items, Notes to and forming part of the financial statements. Table 2.3 – Content of the financial statements. Agencies and authorities must disclose in the notes the following tables relating to outcomes (as specified in the Appropriation Acts relevant to the entity) and outputs: - table A: total cost/contribution of outcomes (whole of government), - table B: major departmental revenues and expenses by output (output group), - table C: major classes of departmental assets and liabilities by output (or output group), - table D: major classes of administered revenues and expenses by outcome, - table E: major classes of administered assets and liabilities by outcome. Some extracts from the “AMODEL Better Practice Guide” of ANAO are given in the appendix to illustrate these statements and schedules. Bram Scheers 13 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 2.1.3.4. Time horizon The financial statements place the results of the reported year next to these of the previous year. There is thus a two year time horizon. 2.1.3.5. Consolidation Section 55 of the FMA Act 1997 requires the Finance Minister to prepare annual financial statements for the Commonwealth Government of Australia (Australian National Audit Office, 2003b pp.199). Whole of Government Reporting (WGR) refers to a view of the overall financial position of the government and is prepared via the consolidation of the financial statements and transactions of all entities controlled by the Australian government. WGR were produced by the Commonwealth Government on a trial only basis in 1994/95. Since that time, the quality and timeliness of preparation of the financial statements have continually improved. There has been a changeover period when the government moved from cash-based to accrualbased accounting. Thus, the “Government of Australia Consolidated Financial Statements” are now accrual-based. AASB 1034 states that the aggregate amounts of the following items must be disclosed in the balance sheet (Miley, 1999 pp.13): - current assets, - non-current assets, - total assets, - current liabilities, - non-current liabilities, - total liabilities, - net assets, - total equity. AASB 1034 also states sub-headings for the Statement of Financial Position that should be used as a minimum. The Commonwealth of Australia, however, uses often different headings. There are also a lot of differences in the accounting treatments used by the various governments. The operating statement items that must be disclosed separately in the Operating Statement are also listed in AASB 1034. The whole of government reports present Statements of Cash Flows that are generally in accordance with AASB 1026. The Statement of Cash Flows is divided into cash flows from operating, investing and financing activities. Also the Government Finance Statistics (GFS) have adopted the accrual basis. The new conceptual framework is in the form of an integrated statement of stocks and flows which is derived from the System of National Accounts 1993 (SNA93). A number of items are treated differently under GFS, Australian System of National Accounts (ASNA) and AAS 31. GFS and ASNA are frameworks designed to facilitate macro-economic analysis, while the public sector accounting standards are aimed at producing general purpose financial statements on a similar basis to private sector entities to provide an overview of government performance, financial position, and financing and investing activities (Skinner, 2000). ANAO considers Spoor financieel management 14 Hoofdstuk 2: Australia this issue to have an impact in the future on financial practices of the Australian Public Sector: “The public sector will also need to resolve the differences relating to the harmonisation of the GFS framework and Australian Generally Accepted Accounting Principles (GAAP). The aim of this work is the development of an AAS for a single set of government financial reports to reduce current levels of confusion, and to aid transparency (Australian National Audit Office, 2003b pp.30).” 2.2. IMPLEMENTATION STRATEGY OF THE REFORMS 2.2.1. General The accounting reforms have been coordinated from the top. The federal government has implemented an accrual-based, outcome and output focused resource management framework for the Commonwealth. The institutional support is given by DOFA whose major goal is to provide communication and information on policy and implementation issues to facilitate skills development across the Commonwealth. In 1998 Finance developed a suite of eleven training courses on the then new accruals framework. It has also developed guidance on accounting policies. Also a central accrual accounting system, Accrual Information Management System (AIMS), has coordinated the replacing of the central cash accounting system (FIRM) with individual accrual accounting systems of agencies and authorities. There is still included a Cash and Appropriation Management Module (CAMM). The reforms have been legally anchored since the trilogy of modern financial management legislation (FMA Act, CAC Act and Auditor-General Act) provides the financial regulatory, accountability and accounting framework for Commonwealth bodies. 2.2.2. Critical success and failure factors The research visit2 to the Commonwealth of Australia from August 15 until August 20 2003 enabled us to deepen our knowledge about the financial reforms and showed some critical factors for success or failure. Some of the factors critical for success are the following: - the accounting reform has become more or less part of the culture: o the political level (mainly the JCPAA) shows interest in the cost information, o the Chief Financial Officer function has become a senior manager function. - the necessity of cash reporting is acknowledged, - the Commonwealth and the states agree on the movement towards accrual accounting, - the reforms are reviewed periodically and if necessary corrective measures are taken, - the acknowledgement that the reform involves extra investments in systems and human capital, - a delegation of responsibilities to the line management and a middle position for DOFA, - the cooperation between the central actors like DOFA and ANAO. 2 During the research visit, we visited DOFA, ANAO, JCPAA, the University of Canberra and two departments (the department of family and community services and the department of education, science and training) Bram Scheers 15 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen We also identified some critical failure factors: - most politicians do not understand the accrual-based reports, - there are a lot of problems with the central accrual accounting system AIMS, - different accounting standards for different purposes: AAS versus GFS, - the lack of accounting expertise within the departments, - the lack of support from some central actors like the Treasury and the Prime Minister and Cabinet, - the guidelines of DOFA and ANAO are very valuable for top management, but must often be rewritten for line or program managers. REFERENCE LIST Alfredson, K. (2001). International harmonisation of accounting standards. Canberra: CPA Ausralia, Public Sector Centre of Excellence, pp. 13. Australian Accounting Research Foundation (AARF) (1998). AAS 29: Financial reporting by government departments. AARF, pp. 84. Australian National Audit Office (2002). Performance information in portfolio budget statements. Better Practice Guide. Canberra: ANAO, pp. 42. Australian National Audit Office (2003a). AMODEL agency: illustrative financial statements for the year ended 30 june 2003. Canberra: ANAO, pp. 157. Australian National Audit Office (2003b). Control structures as part of the audit of financial statements of major Commonwealth entities for the year ending 30 June 2003. Canberra: ANAO, pp. 208. Blöndal, J. R. (2003). Accrual accounting and budgeting: key issues and recent developments. OECD Journal on Budgeting, 3 (1): 43-59. Department of the Prime Minister and Cabinet (2003). Requirements for annual reports. For Departments, Executive Agencies and FMA Act Bodies. Canberra ACT: Department of the Prime Minister and Cabinet, pp. 30. Guthrie, J. (1998). Application of accrual accounting in the Australian public sector rhetoric or reality? Oxford: Blackwell Publishers Ltd, pp. 19. Larsen, G. (2002). CPA Australia position paper on AAS27, AAS 29 and AAS 31 . Melbourne: CPA Australia, pp. 12. Miley, F. (1999). An examination of whole of government financial reporting. Melbourne: CPA Australia, pp. 57. O'Faircheallaigh, C., Wanna, J. & Weller, P. (1999). Public sector management in Australia: new challenges, new directions. Brisbane: Macmillan Education Australia, pp. 327 . Skinner, T. J. (2000). Information paper: accruals-based government finance statistics. Canberra: Australian Bureau of Statistics, pp. 47. Spoor financieel management 16 Hoofdstuk 2: Australia APPPENDIX: EXTRACTS STATEMENTS FROM ILLUSTRATIVE FINANCIAL AMODEL AGENCY STATEMENT BY THE CHIEF EXECUTIVE AND CHIEF FINANCE OFFICER Reference FMA Act 49(4) 1 Sch 1C.2(a) 1 Sch 1C.2(c) In our opinion, the attached financial statements for the year ended 30 June 2003 give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997. 1 Sch 1C.2(c)(iii) Signed........................ Signed........................ J N Smith Chief Executive B R Hatfield Chief Finance Officer 1 August 2003 1 August 2003 1 Sch 1C.2(c)(ii) Commentary 1 Sch 1B.3(a) This statement must be attached to the front of the financial statements. The role of the CFO – Guidance for Commonwealth Agencies, issued by Finance in April 2003, recommends that the CFO should also sign the statement. Bram Scheers 17 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen AMODEL AGENCY STATEMENT OF FINANCIAL PERFORMANCE for the year ended 30 June 2003 Reference 1 Sch App A AAS 29(6.1)(a) AAS 29(10.1) AAS 29(10.5)(a) AAS 29(12.2)(a) AASB 1018(4.1)(a)(i) AAS 29(10.2) AASB 1018(4.1)(a)(ii) Notes 2003 $’000 2002 $’000 Revenues from ordinary activities Revenues from Government Sales of goods and services Interest Revenue from sale of assets Reversals of previous asset write-downs Other Revenues from ordinary activities 3A 3B 3C 3D 3E 3F 105,424 166,156 93 4,450 422 276,545 77,286 159,098 154 11,100 432 248,070 Expenses from ordinary activities (excluding borrowing costs expense) Employees Suppliers Depreciation and amortisation Write-down of assets Value of assets sold Expenses from ordinary activities (excluding borrowing costs expense) 4A 4B 4C 4D 3D 90,006 164,064 15,009 232 3,695 86,343 161,955 12,085 319 10,120 273,006 270,822 79 57 3,460 (22,809) 841 6,200 (533) - 308 6,200 3,768 (16,609) AASB 1018(4.1)(a)(iii) Borrowing costs expense AASB 1018(4.1)(b)(v) Net surplus / (deficit) 5 AASB 1018(4.3) AASB 1018(4.1)(c)(i) AASB 1018(4.1)(c)(iii) AASB 1041(8.4)(c) AASB 1018(8.5)(b) AASB 1018(4.1)(d)(i) AASB 1018(4.1)(d)(ii) Net credit to asset revaluation reserve Decrease in accumulated results on initial application of fair value under accounting standard AASB 1041 Revaluation of Noncurrent Assets Total revenues, expenses and valuation adjustments attributable to the Commonwealth Government and recognised directly in equity Total changes in equity other than those resulting from transactions with owners as owners 12 The above statement should be read in conjunction with the accompanying notes. Spoor financieel management 18 Hoofdstuk 2: Australia AMODEL AGENCY STATEMENT OF FINANCIAL POSITION as at 30 June 2003 Reference 1 Sch App A AAS 36(4.2) AAS 36(7.1)(a)(i) AAS 36(7.1)(a)(ii) AAS 36(7.1)(a)(v) AAS 36(7.1)(a)(vi) AAS 36(7.1)(a)(vi) AAS 36(7.1)(a)(iii) AAS 36(7.1)(a)(viii) AAS 36 (7.4)(a) 2003 $’000 2002 $’000 7A 7B 7C 10,557 10,921 21,478 5,830 16,498 800 23,128 8A,D 8B,D 8E 8C,D 8F 174,802 31,315 1,903 386 1,764 210,170 173,184 38,154 3,814 500 3,268 218,920 231,648 242,048 9A 9B 9C 4,592 10,205 2,363 17,160 4,592 13,218 2,952 20,762 10A 10B 54,647 54,647 1,288 64,708 65,996 11A 11B 32,268 2,810 35,078 36,551 2,131 38,682 Notes ASSETS Financial assets Cash Receivables Other investments Total financial assets Non-financial assets Land and buildings Infrastructure, plant and equipment Inventories Intangibles Other Total non-financial assets TOTAL ASSETS AAS 36(7.1)(b)(i) LIABILITIES Interest bearing liabilities Loans Leases Other Total interest bearing liabilities Provisions Capital use charge Employees Total provisions Payables Suppliers Other Total payables AAS 36 (7.4)(b) TOTAL LIABILITIES 106,885 125,440 NET ASSETS 124,763 116,608 12A 12A 12A 59,583 104,529 (39,349) 41,953 103,688 (29,033) 12A 124,763 116,608 AAS 36(7.1)(b)(ii) AAS 36 (7.1)(b)(iv) EQUITY AAS 36(7.1)(c)(i) AAS 36(7.1)(c)(ii) AAS 36(7.1)(c)(iii) AAS 36(7.4)(d) Bram Scheers Contributed equity Reserves (Accumulated deficits) TOTAL EQUITY 19 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Current assets Non-current assets Current liabilities Non-current liabilities 25,145 206,503 52,339 54,546 30,210 211,838 59,076 66,364 The above statement should be read in conjunction with the accompanying notes. AMODEL AGENCY STATEMENT OF CASH FLOWS for the year ended 30 June 2003 Reference 1 Sch App A AAS 28(4.1) AAS 28(5.1) AAS 28(6.1) AAS 28(7.1)(a) AAS 28(4.2) AAS 28(6.1) AAS 28(7.1)(c) AAS 28(4.2) 2003 $’000 2002 $’000 OPERATING ACTIVITIES Cash received Goods and services Appropriations Interest GST received from ATO Total cash received 189,540 105,000 80 1,675 296,295 174,380 77,000 154 251,534 Cash used Employees Suppliers Borrowing costs GST paid to ATO Total cash used 100,067 182,909 129 283,105 82,093 175,646 57 1,262 259,058 13,190 (7,524) 4,450 800 5,250 11,100 1,300 12,400 Notes Net cash from / (used by) operating activities AAS 28(5.1) 13 AAS 28(4.2) INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment Proceeds from sale of financial instruments Total cash received AAS 28(4.2) Cash used Purchase of property, plant and equipment Purchase of financial instruments Purchase of intangibles Total cash used 13,210 13,210 18,045 2,100 300 20,445 Net cash (used by) investing activities (7,960) (8,045) FINANCING ACTIVITIES Cash received Appropriations – contributed equity Total cash received 18,430 18,430 9,650 9,650 Cash used Repayment of debt Capital use charge paid 3,602 14,531 972 26,039 AAS 28(5.1) AAS 28(4.2) Spoor financieel management 20 Hoofdstuk 2: Australia AAS 28(7.1)(d) AAS 28(4.2) Return of contributed equity Total cash used Net cash (used by) financing activities Net increase / (decrease) in cash held Cash at the beginning of the reporting period Cash at the end of the reporting period AAS 28(4.3) AAS 28(4.3) 7A 800 18,933 27,011 (503) (17,361) 4,727 5,830 10,557 (32,930) 38,760 5,830 The above statement should be read in conjunction with the accompanying notes. AMODEL AGENCY SCHEDULE OF COMMITMENTS as at 30 June 2003 Reference 1 Sch App A 1 Sch 4.B AAS 36(8.3)(d) AAS 36(8.3)(d) AAS 17(11.2)(c) 2003 $’000 2002 $’000 2,000 3,500 5,500 5,300 2,291 7,591 Other Commitments Operating leases 3 Total other commitments 123,847 123,847 127,847 127,847 Commitments receivable Net commitments 129,347 (742) 134,696 1,500 4,000 - 2,000 3,561 2,030 13,255 65,400 45,192 129,347 12,413 67,628 47,806 134,696 BY TYPE Capital commitments Land and buildings 1 Infrastructure, plant and equipment 2 Total capital commitments BY MATURITY 1 Sch App A AAS 17(11.2)(c) Capital commitments One year or less From one to five years Over five years Operating lease commitments One year or less From one to five years Over five years Net commitments by maturity NB: Commitments are GST inclusive where relevant. Outstanding contractual payments for building under construction. 2 Plant and equipment commitments are primarily contracts for purchases of furniture and fittings for new building. 3 Operating leases included are effectively non-cancellable and comprise: 1 AAS 17(11.2)(d) Bram Scheers Nature of lease General description of leasing arrangement Leases for office accommodation Lease payments are subject to annual increase in accordance with upwards movements in the Consumer Price Index. The initial periods of office accommodation leases are still current and each may be renewed for up to five years at the Agency’s option, 21 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen AAS 17(11.2)(d) AAS 17(11.2)(d) Agreements for the provision of motor vehicles to senior executive officers A lease in relation to computer equipment held as at 30 June 2001 which was sold and leased back on 1 July 2001 following a once-off adjustment of rentals to current market levels. No contingent rentals exist. There are no renewal or purchase options available to the Agency. The lessor provides all computer equipment and software designated as necessary in the supply contract for five years plus for a further two years at the Agency’s option on the same terms and conditions. The initial equipment has on average a useful life of two years from the commencement of the contract. The Agency may vary its originally designated requirement, subject to giving three months notice, at no penalty. The above schedule should be read in conjunction with the accompanying notes. AMODEL AGENCY SCHEDULE OF CONTINGENCIES as at 30 June 2003 Reference 1 Sch App A 1 Sch 4A AASB 1044(14.6)(a) AASB 1044(14.6)(c) 1 Sch 4A.4 2003 $’000 2002 $’000 Contingent liabilities Claims for damages/costs 115 150 Contingent assets Claims for damages/costs Net contingent liabilities 13 102 13 137 Details of each class of contingent liabilities and assets, including those not included above because they cannot be quantified or considered remote, are disclosed in Fout! Verwijzingsbron niet gevonden.. The above schedule should be read in conjunction with the accompanying notes. 1 Sch App A AMODEL AGENCY SCHEDULE OF ADMINISTERED ITEMS Reference AAS 29(6.3.11) AAS 29(12.9)(a) Notes 2003 $’000 2002 $’000 188,199 231 1,600 - 206,398 202 1,500 415 Revenues Administered on Behalf of Government for the year ended 30 June 2003 Non-taxation revenue Goods and services Interest Dividends Other Spoor financieel management 20 20 20 20 22 Hoofdstuk 2: Australia Total Revenues Administered on Behalf of Government AAS 29(12.9)(b) 190,030 208,515 119,224 21,124 20,200 3,511 150 130 164,339 125,166 16,758 25,264 5,601 201 121 173,111 Expenses Administered on Behalf of Government for the year ended 30 June 2003 Grants Subsidies Personal benefits Suppliers Write-down and impairment of assets Other Total Expenses Administered on Behalf of Government 21 21 21 21 21 21 This schedule should be read in conjunction with the accompanying notes AMODEL AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2003 Note 1: Note 2: Note 3: Note 4: Note 5: Note 6: Note 7: Note 8: Note 9: Note 10: Note 11: Note 12: Note 13: Note 14: Note 15: Note 16: Note 17: Note 18: Note 19: Note 20: Note 21: Note 22: Note 23: Note 24: Note 25: Note 26: Note 27: Note 28: Bram Scheers Summary of Significant Accounting Policies Events Occurring after Reporting Date Operating Revenues Operating Expenses Borrowing Costs Expense Business Operations Financial Assets Non-Financial Assets Interest Bearing Liabilities Provisions Payables Equity Cash Flow Reconciliation Contingent Liabilities and Assets Executive Remuneration Remuneration of Auditors Average Staffing Levels Act of Grace Payments, Waivers and Defective Administration Scheme Financial Instruments Revenues Administered on Behalf of Government Expenses Administered on Behalf of Government Assets Administered on Behalf of Government Liabilities Administered on Behalf of Government Administered Reconciliation Table Administered Contingent Liabilities and Assets Administered Investments Restructuring Administered Financial Instruments 23 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Note 29: Note 30: Note 31: Appropriations Assets Held in Trust Reporting of Outcomes Spoor financieel management 24 Hoofdstuk 3: Canada HOOFDSTUK 3 CANADA 3.1. DESCRIPTION OF THE ACCOUNTING REFORMS 3.1.1. Accounting functions 3.1.1.1. Historical overview of the reforms Initiative Period Objectives Financial Information Strategy (FIS) 1989 (decision) 1995 (update) 2001 (full implementation) 1995 - Improved Reporting to Parliament Project (IRPP) Modern Comptrollership 1997 (start up) 2001 (start of governmentwide implementation) Results for Canadians: a management framework for the government of Canada 2000 - - - To change the type of information provided to decision makers, To improve the financial management instruments, To move to full accrual accounting by 2001. To improve departmental expenditure information, principally by augmenting financial information with performance information, To introduce performance reports. To strengthen management capabilities in departments and agencies, To strengthen the foundations of modern management, To ensure that managers are effectively supported by their organizations in terms of timely, relevant and integrated financial and non-financial information. To set out a clear management framework and an agenda for change in order to for example improve reporting and accountability to Parliament and to Canadians Table 3.1 – Historical overview of the accounting reforms in Canada. Canada was one of the first countries in the world to move away from cash accounting standards. By the late 1980s, Canada had adopted modified accruals as its basis of accounting for departments and agencies. Financial Information Strategy (FIS) was formally approved in July 1989. The focus of the FIS initiative was on the information required by the central agencies to manage government overall. Departments were seen as providers of the summary information required by the central agencies. FIS was revitalized in 1995 as the Minister of Finance stated in his Budget that the government would move to full accrual accounting starting with fiscal year 20012002. In November 1995, the Treasury Board endorsed FIS as a government priority and approved the updated FIS objectives, scope and implementation approach. The scope of FIS was broadened as FIS was now seen as providing the basis for improvements in management Bram Scheers 25 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen accounting and accountability in departments and agencies, as well as improvements in government-wide financial reporting. As of 1 April 2001, all departments and agencies have successfully implemented new financial systems capable of handling accrual financial information and submitting that information to the government’s central systems for preparation of the summary financial statements (Auditor General of Canada, 2002 pp.1). FIS is a prerequisite to the success of two other federal initiatives: results for Canadians and modern comptrollership as it supports three of the four key elements of modern comptrollership. FIS is now a part of modern comptrollership which is aimed at strengthening management capabilities in departments and agencies. The initiative is an effort to develop standards and practices for integrating financial and non-financial performance information into a meaningful whole and to communicate that information to those who need it. These initiatives did not lead up to a new legislation. It is thus still the (adapted) Financial Administration Act (FAA) of 1985 which is the applicable legislation. 3.1.1.2. Actors involved in the reforms The following table gives an overview of the actors who play an important role in the achievement of the accounting reforms: Actor Role Treasury Board - Treasury Board Secretariat (TBS) (the administrative arm of the Treasury Board) - - To provide the policy framework in areas as accounting, audit and evaluation, financial management and information technology To help Government of Canada manage its financial, information and technology resources prudently and in a manner that best supports the government objectives and priorities, To provide leadership to departments through policies, frameworks of accountability, standards and the promotion of best management practices in the use of technology and information management and sound financial management, To lead the initiative to modernize comptrollership. To issue guidance on accounting matters, To recommend the reporting model. - To review the comptrollership function, To recommend changes for modernisation. To demonstrate strong support for FIS - Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants (CICA) The Independent Review Panel on Modernisation of Comptrollership in the Government of Canada Standing Committee on Public Accounts Spoor financieel management 26 Hoofdstuk 3: Canada Office of the Auditor General (OAG) - To lead the change in the way financial information is used, To ensure that financial management and control is an integral part of government operations and decision making. Table 3.2 - Actors involved in the accounting reforms in Canada. Under the Financial Administration Act, the Treasury Board is responsible for all matters related to financial management. The administrative arm of the Treasury Board, the Treasury Board Secretariat (TBS), issues guidance to departments on the financial and non-financial performance information to be provided to Parliament. The Public Sector Accounting Board (PSAB) is authorized by the Board of Directors of the Canadian Institute of Chartered Accountants (CICA) to issue recommendations and guidance with respect to matters of accounting for federal, provincial, territorial and local governments. The PSAB issues such recommendations and guidance to serve the public interest by strengthening accountability in the public sector through developing, recommending and gaining acceptance of accounting and financial reporting standards of good practice. Officials from the Office of the Auditor General (OAG) and TBS have the opportunity to participate in the development of accounting standards since it is the people who prepare, audit and use government financial statements and reports that develop the PSAB’s standards. 3.1.1.3. Pretext of the reforms There was an urgent need by the central agencies, primarily the Department of Finance and TBS, for more timely and accessible financial information to assist in the overall management of government. The government also recognized that the then present Central Accounting System, a 20-year-old computer system, had reached the end of its economic life and needed to be replaced. This was a unique opportunity to start building a modern information infrastructure. 3.1.1.4. Objectives of the reforms FIS should help the government strengthen significantly its management of business lines and its accountability to Parliament. One of the objectives of FIS is to provide officials with more complete information on costs to compare with results achieved when making key decisions. The information provided in the financial statements was extended so that the statements communicate departmental financial information that is useful to departmental management, central agencies, parliamentarians and the general public in judgements on resource allocation decisions. Moreover, they demonstrate the accountability of the department for the financial affairs and resources entrusted to it and assess management and stewardship. 3.1.1.5. Conclusion: functions of the reforms Both FIS and the Modern Comptrollership Initiative are about modernizing management and providing managers with the necessary tools to make well-informed decisions. The focus is thus on the management function of the accounting system. The introduction of full accrual Bram Scheers 27 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen accounting in combination with the departmental performance reports, however, also has the objective to improve transparency and accountability. 3.1.2. Accounting procedures 3.1.2.1. Accounting legislation and standards Under the authority of the Financial Administration Act (FAA) section 9 (, 1985), TBS has issued some Treasury Board Accounting Standards3 or TBASs. TBAS 1.1 deals with the policy and principles (Treasury Board Secretariat of Canada, 1999): “Departments will follow generally accepted accounting principles (GAAP) as defined in the Canadian Institute of Chartered Accountants Public Sector Accounting (PSA) Handbook. Specifically, departments will use the "expense basis" of accounting as referred to in the handbook (PS Section 1500.93). Subject to modifications or interpretations by the Treasury Board, the PSA Handbook will be the authoritative reference manual. In situations where a specific item is not covered in the PSA Handbook, then the Canadian Institute of Chartered Accountants (CICA) Handbook will be used.” Except to ensure an appropriate level of consistency for government financial reporting, departments will establish accounting policies specific to their needs subject to the recommendations contained in the PSA and CICA handbooks. This policy became effective on 1 April 2001. There is also a financial information strategy accounting manual4 (FIS accounting manual) which: - defines differences between accrual accounting, authorities accounting and reporting by objects, - describes a variety of accounting transactions and indicates how to code them with supporting rationale in the three scenario’s indicated above, - outlines reporting and presentation requirements for departmental financial statements. 3.1.2.2. Valuation rules Generally, under existing GAAP, transactions and events are recognized in financial statements at the amount of cash or cash equivalents paid or received or the fair value ascribed to them when they took place: i.e. historical cost. By using historical cost as the basis for record-keeping, financial statements will contain objective and verifiable information. Historical cost provides financial statement users with a stable and consistent benchmark that they can rely on to establish historical trends (Treasury Board Secretariat of Canada, 2001). Thus, all assets treated as capital assets under Public Sector Accounting Board recommendations plus leasehold improvements are recorded at their acquisition cost. The 3 4 See http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/accstd/siglist_e.asp See http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/accstd/fisam-mcssif-0701_e.asp Spoor financieel management 28 Hoofdstuk 3: Canada capitalization of software and leasehold improvements has been done on a prospective basis from April 1, 2001. 3.1.2.3. Most important actors Under FIS, departments are responsible for identifying all the financial reporting accounts that pertain to their department and for maintaining those accounts in their departmental systems. At each month-end, departments are to forward a summary of their data by Financial Reporting Accounts (FRAs), prescribed by the Treasury Board, to the Receiver General so it can be input monthly to the Central Financial Management and Reporting System (CFMRS) as part of the year-to-date departmental trial balance. Government organizations do not hold cash accounts. Treasury holds cash for the entire government. The Department of Finance produces the Fiscal Monitor, a monthly newsletter, which highlights the financial results of the Government together with the reasons underlying major variances. Since 1994, it also publishes an annual financial report which provides an overview of revenues the government has collected and what it has spent. 3.1.2.4. Required reports Federal departments and agencies submit a performance report to Parliament every fall outlining what they have accomplished. According to TBAS 1.1 each department, as defined by section 2 of the FAA, will produce annually a full set of financial statements as at March 31 that can withstand the test of audit. The financial statements, accompanied by a statement of management responsibility and an auditor’s report, must be available to the Receiver General for Canada by June 15th of each year. Furthermore, departments will publish the financial statement package in their departmental performance report. All the financial information required on a government-wide basis will continue to be included in the Public Accounts. 3.1.3. Accounting format 3.1.3.1. Cash or accrual accounting? The financial statements are prepared on an accrual basis of accounting in accordance with TBASs. These standards are based on generally accepted accounting principles in Canada (see section accounting legislation and standards). 3.1.3.2. Format of the annual report Departmental performance reports5 play a key role in the cycle of planning, monitoring, evaluating and reporting through ministers to Parliament and citizens. The departmental 5 87 performance reports for the period ending March 31, 2003 are posted at: http://www.tbssct.gc.ca/rma/dpr/02-03/0203dpr-rmr_e.asp Bram Scheers 29 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen performance report provides a focus on results-based accountability by reporting on accomplishments achieved against the performance expectations and results commitments as set out in the spring report on plans and priorities. It focuses on outcomes and describes the contribution the organization has made towards those outcomes. Supporting the need for responsible spending, it links resources to results. The report may be structured in the way that is most suitable for telling the performance story of the department. Nonetheless, some consistency is needed across government. Therefore, departments should use three general sections (minister’s message, context and performance discussion) and annexes. The discussion of performance should be aligned to the strategic outcomes that the department seeks to provide to Canadians. In order to facilitate the provision of the information asked, TBS also provides several templates in its guidance for the departmental performance reports6. 3.1.3.3. Format of the financial statements The financial tables of the departmental performance report provide a link to, and closure on, the financial appropriations that were given to the department and as such, are an essential component of being accountable to Parliament. For each table, a brief narrative at the beginning should be provided to set the context for the information provided, such as purpose of the initiative, partners (if applicable) and resources. Significant changes that have occurred to the planned spending must also be explained. According to TBS guidance on the departmental performance reports 2002-2003, the financial tables are the following (Treasury Board Secretariat of Canada, 2003): - summary of voted appropriations, - comparison of total planned spending to actual spending, - historical comparison to total planned spending to actual spending, - crosswalk between strategic outcomes and business lines, - revenues: respendable and non-respendable, - statutory payments, - transfer payments (grants and contributions), - resource requirements by organization and business line, - projects (note: formerly capital projects), - status summary of major crown projects, - loans, investments and advances, - revolving fund financial summaries, - contingent liabilities. The first three financial tables are required for every organization. The other financial tables are required if applicable to the department or agency and should be included in their departmental performance report. The templates of the first three financial tables are given in the appendix. Apart from these financial tables, there are also the financial statements. According to TBAS 1.1 the financial statements will consist of a statement of financial position, a statement of 6 The guidance for the departmental performance reports 2002-2003 can be found at: http://www.tbssct.gc.ca/rma/dpr/02-03/guidance/gl-ld_e.asp Spoor financieel management 30 Hoofdstuk 3: Canada operations, a statement of cash requirements and a statement of expenditure authorities used, together with required notes and schedules. The reporting entity for the financial statements is the department or agency and, if applicable, comprises the following sub-entities: revolving funds, special operating agencies, consolidated specified purpose accounts etc. The intention is that the departments will publish these financial statements in their performance reports. Departments were asked to produce the financial statements starting with 2001-2002. The government’s model, however, does not require them to record significant liabilities and costs. OAG means that without these items the financial statements do not provide reliable information on departments’ program costs and financial positions. TBS plans to address these items once the initial phase of FIS is stable and an appropriate management control framework is in place. As a consequence, TBS decided that it would not require departments to include their financial statements in their 2001-2002 performance reports. However, where adequate control framework exists, TBS has approved some inclusions (Auditor General of Canada, 2001 pp.10). Still, the financial statements are generally not included in the departmental performance reports of 2002-2003. 3.1.3.4. Time horizon According to TBAS 1.2 financial statements should provide a comparison of current period amounts with those of the immediate prior period as well as a comparison to the financial plan as expressed in departmental pro-forma financial statements which would be prepared on the same basis used to report the results. 3.1.3.5. Consolidation Departmental financial reporting or equivalent codes must be related to the Financial Reporting Accounts (FRAs) in the government-wide list of FRAs prescribed by the Treasury Board. The FRAs provide a standardised repository of government-wide information, which can be used for preparing financial statements at the central or departmental level. As the basis for the FRA classification is accrual accounting. Monthly government-wide financial statements are included in the Monthly Statement of Financial Operations, which is used by the Department of Finance to produce the results issued in the Monthly Fiscal Monitor. The government’s annual financial statements are audited by the Auditor General and are included in the Public Accounts of Canada that are tabled each fall in Parliament. The Public Accounts of Canada is the report of the government of Canada prepared each fiscal year by the Receiver General as required by section 64 of the Financial Administration Act. It is the centralized record of the Government’s financial transactions maintained by the Receiver General in which the transactions of all departments and agencies are summarized. The 2002-2003 Summary Financial Statements of the Government of Canada are the first it has prepared on the full accrual basis of accounting (Auditor General of Canada, 2003b). The Auditor General also expresses an opinion on the Annual Financial Report of the Government of Canada, which is published by the Department of Finance in the fall. This document provides: Bram Scheers 31 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen - timely access to understandable and relevant information on the government’s financial activity, includes a full set of condensed financial statements that are based on the audited results, which appear in the Public Accounts of Canada. 3.2. IMPLEMENTATION STRATEGY OF THE REFORMS The accounting reforms were mostly top-down initiatives. As a consequence, there was a significant institutional support from the central departments. The Treasury Board and TBS gave and still give extensive guidance to departments and agencies in preparing the reports and outlining what they should contain. Also the Auditor General has been extensively consulted in the development of these new reports and the design and criteria for their assessment (Blöndal, 2001). This central support was complemented with the involvement of the line departments. The FIS accounting manual for example reflects the collaborative efforts of over 45 people representing some 24 departments within the federal government. To help departments upgrade their systems in a cost-effective manner, the government initiated the Shared Systems Initiative for financial management systems. Departments were to select one of seven approved financial systems, and, through the use of “cluster groups”, would share the costs of development of core system requirements, training and related maintenance. The accounting reforms are comprehensive and thus applicable in all the departments and agencies. No big bang approach was followed to introduce them. FIS began at the end of the eighties. Progress in the early years was slow, but at the end of the nineties the tempo of work had picked up. FIS then focussed on implementing new departmental financial systems that were year 2000-compliant and on ensuring that departmental and central systems would provide appropriate information to include in the government’s annual financial statement (Auditor General of Canada, 1998 pp.5). Thereafter, the attention shifted towards the implementation of accrual accounting. Canada thus adopted a rather gradual approach to reform whereby it pilot tests a number of reform models for extended time periods. The accrual accounting system is not legally anchored in FAA, but it was the Minister of Finance who announced in his Budget 1995 that the government would move to full accrual accounting. As part of its FIS, the government has invested over $600 million in new financial systems, policies and training (Auditor General of Canada, 2003a pp.1). Over the course of the Modern Comptrollership Initiative (1997-2004) the Treasury Board will have allocated a total of $45 million to support government-wide implementation. After the successful implementation of FIS, TBS continues to support the FIS implementation through its ongoing review and introduction of accounting policies, training and review of the quality of financial data. The change in management practices required to realize the full benefits of FIS is now part of the longer-term process of Modern Comptrollership implementation. Spoor financieel management 32 Hoofdstuk 3: Canada REFERENCE LIST Financial administration Act. Auditor General of Canada (1998). Chapter 18. The financial information strategy: a key ingredient in getting government right. Ottawa, ON: Office of the Auditor General of Canada, pp. 27. Auditor General of Canada (2001). Financial Information Strategy. Infrastructure Readiness. Ottawa, ON: Office of the Auditor General of Canada, pp. 22. Auditor General of Canada (2002). Financial management and control in the government of Canada. Ottawa, ON: Office of the Auditor General of Canada, pp. 25. Auditor General of Canada (2003a). Managing the quality of financial information. Ottawa, ON: Office of the Auditor General of Canada, pp. 27. Auditor General of Canada (2003b). Supplementary information observations of the Auditor General on the financial statements of the government of Canada for the year ended March 31, 2003. Ottawa, ON: Office of the Auditor General of Canada, pp. 11. Blöndal, J. R. (2001). La procédure budgétaire au Canada. OECD Journal on Budgeting, 1 (2): 43-91. Treasury Board Secretariat of Canada (1999). Accounting standards - policies and publications. Ottawa, ON: Treasury Board Secretariat of Canada Treasury Board Secretariat of Canada (2001). Financial information strategy accounting manual. Ottawa, ON: Treasury Board Secretariat of Canada Treasury Board Secretariat of Canada (2003). Guidance departmental performance reports 2002-2003. Ottawa, ON: Treasury Board Secretariat of Canada Bram Scheers 33 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen APPENDIX: TEMPLATES OF THE MANDATORY FINANCIAL TABLES Table 1 - Summary of Voted Appropriations Purpose of this table: This table explains the way Parliament votes resources to the department in a standardized fashion. Who must include this table: All departments and agencies. Financial Requirements by Authority ($ millions) 2002-2003 Vote Total Planned Spending Total Authorities Total Actual Spending x,xxx.x x,xxx.x x,xxx.x XX Capital expenditures xxx.x xxx.x xxx.x XX Grants and Contributions xxx.x x,xxx.x x,xxx.x (S) Minister of XXX – Salary and motor car allowance xx.x xx.x xx.x (S) xxx.x xxx.x xxx.x x,xxx.x x,xxx.x x,xxx.x Program Name XX Operating expenditures as required Total Department Table 2 - Comparison of Total Planned to Actual Spending Purpose of this table: To explain the way resources are used by the department in a standardized fashion. Who must include this table: All multiple business lines departments and agencies. (Single business line organisations - click here to access the example.) What to include: A brief explanation of the nature and sources of revenues, particularly, if they relate to user fees or cost recovery policies. Spoor financieel management 34 Hoofdstuk 3: Canada Personnel input factor: Contributions to Employee Benefit Planning is 19.5% and Public Service insurance plans i.e. health and dental plans is 7.5%. Cost associated with employee compensation payments provided by Human Resources Development Canada, can be obtained from the responsible contact - click here to access Inquiry list. Salary and associated costs of legal services provided by Justice Canada can also be obtained from the responsible official indicated on the Inquiry list. For multiple business line organizations Departmental Planned versus Actual Spending by Business Line (millions of dollars) Less: Grants & Total Gross Respendable Total Net Business Lines FTEs Operating Capital Contributions Expenditures Revenues* Expenditures Business Line 1 (planned spending) xxx xxx.x - xxx.x xxx.x - xxx.x (total authorities) xxx xxx.x - xxx.x xxx.x - xxx.x (Total Actual Spending) xxx xxx.x - xxx.x xxx.x - xxx.x Business Line 2 (planned x,xxx spending) x,xxx.x xxx.x - x,xxx.x (xx.x) x,xxx.x (total authorities) x,xxx x,xxx.x xxx.x - x,xxx.x (xx.x) x,xxx.x xxx x,xxx.x xxx.x - x,xxx.x (xx.x) x,xxx.x Total (planned spending) x,xxx x,xxx.x xxx.x xxx.x x,xxx.x (xx.x) x,xxx.x1 (total authorities) x,xxx x,xxx.x xxx.x xxx.x x,xxx.x (xx.x) x,xxx.x2 (Total Actual Spending) x,xxx x,xxx.x xxx.x xxx.x x,xxx.x (xx.x) x,xxx.x3 (Total ActualSpending) Bram Scheers 35 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Other Revenues and Expenditures Non-respendable Revenues** (xx.x) (total authorities) (xx.x) (Actuals) (xx.x) Cost of services provided by other departments xxx.x (total authorities) xxx.x (Actuals) xxx.x Net Cost of the Program x,xxx.x (total authorities) x,xxx.x (Actuals) x,xxx.x Note: Due to rounding, figures may not add to totals shown. 1 This figure should match your 2002-2003 RPP 2 This figure should match your total authorities 3 This figure represents your total actual spending * Formerly "Revenues Credited to the Vote". In some cases, respendable revenues can also include the statutory item "Expenditures pursuant to Section 29.1 (1) of the FAA." ** Formerly "Revenues Credited to the General Government Revenues" (GGR) For single business line organizations Departmental Planned versus Actual Spending 2002-2003 Business Line Total Planned Spending Total Authorities Total Actual Spending FTEs xxx - xxx.x Operating xxx - xxx.x Capital xxx - xxx.x Grants & Contributions x,xxx (xx.x) x,xxx.x Total Gross Expenditures x,xxx (xx.x) x,xxx.x Spoor financieel management 36 Hoofdstuk 3: Canada Less: Respendable Revenues* x,xxx (xx.x) x,xxx.x Total Net Expenditures x,xxx (xx.x) x,xxx.x (xxx.x) (xxx.x) (xxx.x) xxx.x xxx.x xxx.x x,xxx.x x,xxx.x x,xxx.x Other Revenues and Expenditures Non-respendable Revenues** Cost of services provided by other departments Net Cost of the Program * Formerly "Revenues Credited to the Vote". In some cases, respendable revenues can also include the statutory item "Expenditures pursuant to Section 29.1 (1) of the FAA." ** Formerly "Revenues Credited to the General Government Revenues" (GGR) Table 3 - Historical Comparison of Total Planned Spending to Actual Spending Purpose of this table: To provide an historical perspective on how resources are used by the department in a standardized fashion. Who must include this table: All departments and agencies. Multiple Business Lines Organizations Historical Comparison of Departmental Planned versus Actual Spending by Business Line ($ millions) 2002-2003 Business Lines Business Line 1 Actual 20002001 Total Planned Spending Total Authorities Total Actual Spending xxx.x xxx.x xxx.x xxx.x Business Line 2 x,xxx.x x,xxx.x x,xxx.x x,xxx.x xxx.x Business Line 3 x,xxx.x x,xxx.x x,xxx.x x,xxx.x xxx.x xx.x xx.x xx.x xxx.x x,xxx.x x,xxx.x x,xxx.x x,xxx.x x,xxx.x Business Line 4 Total Bram Scheers xxx.x Actual 20012002 xx.x 37 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Single Business Line Organizations Historical Comparison of Departmental Planned versus Actual Spending ($ millions) 2002-2003 Business Line Name of Department or Agency Total Actual Actual 2000- 20012001 2002 Total Planned Spending Total Authorities Total Actual Spending x,xxx.x x,xxx.x x,xxx.x x,xxx.x xxx.x x,xxx.x x,xxx.x x,xxx.x x,xxx.x x,xxx.x Spoor financieel management 38 Hoofdstuk 4: The Netherlands HOOFDSTUK 4 THE NETHERLANDS 4.1. DESCRIPTION OF THE ACCOUNTING REFORMS 4.1.1. Accounting functions 4.1.1.1. Historical overview of the reforms Initiative Period Objectives Government Accounting Reform Operation Late 1980s - Cash and commitment accounting system 1989 (decided) 1992 (implemented) 1991 - Discussion document “Kapitaaldienst” of the Minister of Finance Agency model Accrual accounting for agencies Policy document “From expenditure to costs” From Policy Budget to Policy Accountability (VBTB) Accrual accounting for central government departments Governments Accounts Act 2001 1991 - 1995 - 1997 - 1999 (decided) 2002 (implemented) 2000 (decided) 2002 - To improve the financial information (budget information and accounting information) and financial management at the ministries To also record the commitments next to cash recording To discuss the reintroduction of the distinction between the current account and the capital account To introduce a result-oriented management model, To accomplish greater efficiency than otherwise possible by assigning the status of agency to government bodies. To introduce accrual accounting for agencies To weigh the advantages and disadvantages of an accrual accounting system To make departmental budgets and accounting more transparent and more closely related to policy goals, by linking objectives, performance and resources to one another To introduce accrual accounting for central government by 2006 To translate the more results-oriented financial management into the Governments Accounts Act Table 4.1 – Historical overview of the accounting reforms in the Netherlands. The application of accrual accounting in government accounting has a very long history in the Netherlands (the first time as long as ago as 1916). However, until 1989 cash accounting was used in central government despite some attempts to introduce a distinction between the current account and the capital account during the intermediate period between 1927 and 1976. In 1989, the cash accounting system was adapted by the introduction of the recording of commitments (Bac, 2002 pp.278). In 1991, the Minister of Finance sent a discussion document “Kapitaaldienst” on the capital account to Parliament. It treated both the issues of full accrual accounting and budgeting. On the basis of this document Parliament decided that the capital account would not be re- Bram Scheers 39 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen introduced in central government and that full accrual accounting and budgeting would be limited to government agencies. Up to 1995, accrual accounting was used only in state-owned enterprises. On January 1, 1995 the accrual system also became obligatory for the agencies (independent ministerial service units) which were introduced as a consequence of the agency model. The first four agencies started in 1994 and by 2001 there were 23 of them7. The number of agencies was expected to double within four to five years. Meanwhile, discussions on the accrual system for central government continued in the Netherlands. In 1997, the policy document “From expenditure to costs” concluded that is was not yet appropriate to shift comprehensively to the accrual accounting system. The Minister of Finance suggested that other services be allowed to use an accrual system under certain conditions. The rise in the number of agencies and the prospect of other services using the system created a situation in which accrual-based accounting was steadily gaining credibility and would soon be applied by many government bodies (Havermans, 2001 pp.5). In September 2000 the Minister of Finance announced that further steps towards accrual accounting for central government would be taken. As a consequence, the Budget for 2001 announced the comprehensive introduction of the accrual accounting system in central government (Hogendoorn, Kok, and van Oosterroom, 2001). The objective is that by 2006 central government will complete the change over to accrual accounting. To translate these more results-oriented financial management initiatives into law, the currently applicable Governments Accounts Act 2001 was introduced. 4.1.1.2. Actors involved in the reforms The following table gives an overview of the actors who play an important role in the achievement of the accounting reforms: Actor Role Ministry of Finance - The Netherlands Court of Audit - The Lower House - The Public Expenditure Committee - To lead the discussion about the accounting system, To introduce the VBTB project, To participate in working parties on quality improvement of the annual reports. To participate in the working parties that develop the proposals, To follow up and monitor the implementation of the accounting reforms. To pass a motion in order to handle the unacceptable delay in the delivery of financial statements, To ask the publication of the accounts of the previous year by May 15 instead of September 1 and the improvement of the quality of the financial statements. Table 4.2 - Actors involved in the accounting reforms in the Netherlands. 7 The share of agencies in the national budget is normally measured using two criteria: staff numbers in the fte’s and the volume of expenditure. The two criteria give completely different results. The annual financial report of the central government for 1999 states that the 22 agencies existing at that time accounted for 28% of the fte’s and 4% of the total expenditure covered by the national budget (Hogendoorn et al., 2001 pp.9). Spoor financieel management 40 Hoofdstuk 4: The Netherlands It is mainly the Ministry of Finance that leads the accounting reforms in central government. Though, one role that the Ministry of Finance has fulfilled much more emphatically over the last couple of years is that of knowledge broker. For example, it has issued several manuals for agencies that are useful to applicant agencies during their process of change (Van Oosteroom, 2002 pp.106). The Netherlands Court of Audit participates in the draw up of the reforms and monitors the implementation of these. Also Parliament plays a role in the accounting reforms. To enhance its control function, the Lower House itself (in the form of the Public Expenditure Committee) took the initiative to bring forward the publication of the accounts of the previous year from September 1 to May 15 as well as to improve the quality of the financial statements (Havermans, 2001 pp.4) . 4.1.1.3. Pretext of the reforms The Netherlands has a long tradition of discussing whether some sort of accrual system should be applied by central government as a whole (see the historical overview section). The advocates of such an evolution use different arguments. It is argued that the absence of a distinction between treatment of current and capital expenditure has made capital expenditure relatively vulnerable to cuts in periods of fiscal stress. Investment expenditure would be crowded out of the budget by non-investment expenditure because while the former has to compete for the full amount with other types of expenditure in any year, the benefits of it are spread over many years ahead (Korte, 2001 pp.11). Other arguments in favour were that it would enable the cost and utility of government action to be compared and that it would provide the clearest possible picture of changes in the net asset position of central government. Although accrual accounting was not yet introduced in central government, the status of an agency was assigned to government bodies to accomplish greater efficiency than otherwise possible. In order to achieve this improved efficiency, agencies have been allowed to use accrual accounting and budgeting and some other specific rules. However, critical remarks have been made on maintaining two systems next to each other in central government. This cannot contribute to greater transparency in the information submitted to the States General. Moreover, the co-existence of two systems does not make the business operations or the auditing more effective. Also the fact that gradually some OECD countries introduce the accrual system is a source for discussion in the Netherlands. The VBTB project which introduced the concepts of policy-based budgets and policy accounting was an important preparatory step for the decision to introduce a comprehensive accrual accounting system in central government. Such a system will support the implementation of the policy budget and together, they will stimulate a result-oriented approach in central government. Other developments that made the comprehensive introduction logically timely were (Hogendoorn et al., 2001 pp.6): - the growth in the number of government agencies, Bram Scheers 41 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen - comparisons between the market and government, the state of government finance (EMU deficit was running at about +1% of GDP). 4.1.1.4. Objectives of the reforms The recent developments (“From Policy Budget to Policy Accountability” or VBTB) which are introduced in 2002 are expected to lead to the improvement of budgeting and accounting for enhanced accountability. The complete implementation of accrual accounting, expected to last until 2006, will complement this by making the central government’s accounting system more suitable to integrated financial accounting and management accounting. The arguments in favour of the accrual system are also presented from the perspective of internal management: a service can be made more effective by introducing transparency into the expenditure (result-oriented management). 4.1.1.5. Conclusion: functions of the reforms The support the accrual accounting system can give to result-oriented management is an important factor for the introduction of the system. The micro-perspective of the reform or the management function thus plays a dominant role. But also at the macro level, the new system realizes some benefits. It will produce more transparency and thus increase accountability as the parallel systems where the ministries use cash and liabilities and the agencies use accrual accounting will disappear. It should also produce a more even and efficient balance between current and capital expenditures. This improves the allocation function. 4.1.2. Accounting procedures 4.1.2.1. Accounting legislation and standards The central government accounting regulation used to be laid down in the Accounts Act of 1976. This act replaced the Accounts Act of 1926. In the course of the years the Accounts Act of 1976 was adapted several times, of which the sixth adaptation took place on July 10, 1995. In 2002, the new Governments Accounts Act 2001 was published in the law gazette. A new Accounts Act was produced because government wanted to introduce a more results-oriented financial management (the VBTB project). The regulation of the management of cash and non-monetary assets; bookkeeping and auditing; and the recording of commitments, expenditures and receipts are tackled in this Act (, 2002). In addition, the Accounts Act comprises the regulation of agencies, such as the agency budget, accounting system and financial statements. So the Netherlands has a legal framework for the central government accounting that comprises the regulations which are required for organizing, managing and controlling the budget process; determining the role and the task of the Minister and the ministries within central government; and discharging the accountability for the resources which are entrusted to them (Ouda, 2001 pp.72). The new Act was applied for the first time on the fiscal year 2002. Spoor financieel management 42 Hoofdstuk 4: The Netherlands 4.1.2.2. Valuation rules The current Dutch central government accounting system does not enable to draw up the balance sheet, so no valuation rules are used. The agencies, however, work with an accrual system and use the current value principle. If this principle is not feasible, the indexed historical cost is used. 4.1.2.3. Most important actors The Accounts Act of 1976 elaborated further the supervisory function of the Minister of Finance. The Minister of Finance determines the information to be supplied to him for the purposes of the supervisory function in respect of budget implementation. Moreover, he exercises a supervisory function in respect of the structure of the financial records and the audit process involved in the budget implementation (, 2001). The Minister of Finance also draws up the financial statement of central government as a whole and forwards it together with the financial statements of the ministries to the Court of Audit. The accounting system of the central government is formed by the whole of the central head bookkeeping (“rijkshoofboekhouding”), which is kept at the Ministry of Finance, to which are attached the decentral receipts and expenditures bookkeeping that are kept at every department. The department receipts and expenditures bookkeeping are connected to the central head bookkeeping by current accounts, which are included in every bookkeeping and the central head bookkeeping. In connection with this accounting system, a number of extraaccounts are kept to record the financial assets and liabilities (debtors, creditors, …) that are not comprised in the accounting system. Each department has a central direction “Financial Economic Affairs”. This is required by section 27 of the Accounts Act 2001. The tasks are described in the decree “Task central direction Financial Economic Affairs”. The direction is closely involved with all the financial transactions within the department. It also coordinates the (often monthly) overviews for the Ministry of Finance and the draw up of the annual report. As no financial affair happens without consciousness of the direction, it has a powerful position within the departments (Bestebreur, Kraak, and van der Burg, 2001). Although the agencies remain part of a ministry, the agencies and the ministries have their own accounting system. As the agencies use an accrual system and the departments use a cash and commitment system, the question could be how this dual system can work in practice. An important clue to the answer is that each agency has a budget of its own and that money transfers from ministries to agencies are recorded as cash payments in the budgets of the ministries and as income in the budgets of the agencies, and vice versa (Korte, 2001 pp.10). Agencies are allowed to use a deposit and loan facility that is provided by the Ministry of Finance on quasi-commercial conditions. The Ministry of Finance thus operates more or less as a commercial bank for the agencies. 4.1.2.4. Required reports Article 51 of the Accounts Act 2001 requires the Ministers to demonstrate their accountability for the implemented policy and management by means of a departmental annual report. The Bram Scheers 43 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen annual reports must be sent to the Minister of Finance in March at the latest. The Minister of Finance draws up the financial statement of central government as a whole and forwards it, like the financial statements of the ministries, to the Court of Audit by April 21 at the latest. On the third Wednesday in May, the Minister of Finance has to hand over the annual reports to Parliament. In this way a substantial acceleration in comparison to actual practice is achieved. 4.1.3. Accounting format 4.1.3.1. Cash or accrual accounting? In the Netherlands, the departments are not yet applying accrual accounting. Instead, they use cash and commitments accounting which is a type of modified cash accounting. This means that the central government accounting system is organized to measure the flow of current financial resources. It measures cash and obligations by recognizing transactions and events which have occurred by year-end and are normally expected to result in a cash receipt and/or disbursement within a specific period after year-end. Central government does not differentiate between current expenses and capital expenses. The objective is that by 2006 central government will complete the change over to accrual accounting. The agencies, however, use an accrual accounting system. The financial statements are thus based on an accrual basis and the characteristics of the accounting system of the agency are largely coinciding with those of the commercial accounting system. 4.1.3.2. Format of the annual report As a result of the project “From Policy Budget to Policy Accountability” (for more information see (Scheers, Sterck, Van Reeth, and Bouckaert, 2002)), the budget and the financial reports must be more in-line with the general policy of government from fiscal year 2002 onward. This means that a relationship must be drawn between policy, performance and resources, both proposed and realised. The departmental annual report is a mirror of the budget and, after the end of the year, logically looks back on the extent of goal-realisation of the policy priorities as well as on the financial outcome. It gives an answer on the following three questions: have we achieved our goal?; have we done what we were going to?; has it cost what it was allowed to cost? It therefore contains a policy report and the annual accounts8. The policy report deals with the performed policy and thus holds non-financial information. It is structured by policy priorities, policy items, non-policy items and a statement on business management. The annual accounts then justify the financial consequences of the performed policy. Relevant information on agencies is presented in the “agency paragraph” of the budget and financial report. 4.1.3.3. Format of the financial statements The Accounts Act deals with the regulation of the central government financial statements. According to the Dutch government accounting system, the latter must be seen in connection 8 An example is the annual report of the Ministry of Economic Affairs which can be found at: http://www.minez.nl/publicaties/pdfs/03DC02.pdf Spoor financieel management 44 Hoofdstuk 4: The Netherlands with the budget. The financial statements are budget execution statements. That is why the accounting system is called budget bookkeeping (Ouda, 2001 pp.73). The financial statements are important means by which each Minister demonstrates his accountability for the management of financial affairs and the use of financial resources entrusted to him. According to the Accounts Act the Ministers, each in respect of the budget which he manages, should draw up the following financial statements: - the accounts of the commitments, expenditures and receipts, accompanied by explanatory notes, - the trial balance as at December 31 relating to these accounts, accompanied by explanatory notes. The accounts of the commitments, expenditures and receipts are given for each policy item of the budget. The above-mentioned accounts and trial balance should be accompanied by an auditor’s report before being submitted to the Minister of Finance. The accounts and the trial balance are illustrated in the appendix by extracts from the financial statements 2002 of the Ministry of Economic Affairs (Ministerie van economische zaken, 2003). As mentioned before, the budget and the financial statements of the agencies are accrualbased. The characteristics of the accounting system of the agency are largely coinciding with those of the commercial accounting system. As a consequence, the financial statements are consisting of the profit and loss account and the balance sheet on which all assets and liabilities are mentioned. These statements of the agencies are included in the annual report of their mother ministry by a distinct record and clarification. The financial statements of the departments thus contain for every agency a distinct financial account. 4.1.3.4. Time horizon The accounts of commitments, expenditures and receipts indicate for each policy item besides the actual amount also the original estimates and the various changes to the estimates made by Act of Parliament. The time horizon is thus only the reporting budget year. However, section 54 of the Accounts Act 2001 states that the explanatory notes should include the years t-4 up to the reporting year t. 4.1.3.5. Consolidation By March 1 of each year, the Minister of Finance submits to the States General the provisional accounts for the preceding year (section 50 of the Accounts Act 2001). These accounts give a survey about realized amounts of expenditures and receipts. Since 1999, there is a new document in which all the information for accountability on the central government level is collected: the financial statement of the central government as a whole. After the Minister of Finance has received the financial statements from all Ministers, he draws up the financial statement of the central government as a whole. All these statements are handed over to Parliament on the third Wednesday of May. Bram Scheers 45 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen “Government-wide accounts, known as the State Annual Report, will be prepared, enabling the government as a whole to report at national level on policy, operations and financial resources. This report will form the basis for an annual plenary debate in the Lower House on or immediately after the third Wednesday in May.” (Havermans, 2001 pp.5) The structure of the central government statement is as follows (Bestebreur et al., 2001 pp.164): - request for discharge, - the outlines of the budget policy, - the outlines of financial management, - appendix 1: the expenditures and non-tax receipts, - appendix 2: the EMU-balance, EMU-debt, social funds and financing needs, - appendix 3: the vertical clarification, - appendix 4: the State balance sheet (Staatsbalans). Notwithstanding the Dutch central government accounting system does not enable to draw up the balance sheet, the State balance sheet (Staatsbalans) is prepared. This takes place according to the European system of national and regional accounts (ESR-95). The annual preparation of the State balance has the purpose of giving insight into the composition and size of the net worth of central government, the change in it and the causes of increasing and decreasing the net worth balance. This balance sheet is prepared at the end of the fiscal year using the trial balance of central government and the statements of ministries regarding the goods under their control (Ouda, 2001 pp.76). 4.2. IMPLEMENTATION STRATEGY OF THE REFORMS The decision to introduce a comprehensive accrual accounting system for central government has been taken from the top. It are the Minister of Finance and his Ministry which are the pioneers. However, the accounting reforms are not fully coordinated from the top. The Cabinet established a policy group to work out a policy design showing what a comprehensive accrual accounting system for the central government could look like. The group has an inter-departmental membership and includes members from trade and industry and local government (Hogendoorn et al., 2001 pp.12). The Ministry of Finance often prepares an innovative initiative in co-operation with the specialist ministries in interdepartmental working parties. The Ministry of Finance coordinates the implementation, inter alia, by means of progress reports for the Parliament. Also the Court of Audit actively participates in these working parties and monitors the implementation of the accounting reforms. There is thus a well developed institutional support for the reforms. The implementation of the reforms generally takes several years because of the comprehensiveness of the change and the differences in the starting positions of the various specialist ministries. No “Big Bang” transition to the accrual system was considered. Instead, government announced measures to propagate the use of the more result-oriented management model supported by full accrual accounting and budgeting for individual government bodies wherever possible. Spoor financieel management 46 Hoofdstuk 4: The Netherlands An accrual accounting system for the central government is not legally anchored in the Accounts Act. However, the comprehensive introduction of the accrual accounting system in central government was announced in the Budget for 2001. REFERENCE LIST Wet van 8 december 1976, houdende regeling van het beheer van 's Rijks financiën (2001). Comptabiliteitswet. pp. 23. Wet van 13 juli 2002 tot vaststelling van de Wet inzake het beheer van de financiën van het Rijk (Comptabiliteitswet 2001) (2002). pp. 33. Bac, A. (2002). Government budgeting and accounting reform in the Netherlands. OECD Journal on budgeting, 2 (supplement 1): 265-284. Bestebreur, A., Kraak, A. D. & van der Burg, C. (2001). Modern financieel management bij het Rijk. De Rijksbegroting belicht. Den Haag: Sdu Uitgevers, pp. 275. Havermans, A. J. E. (2001). Dutch government accounting from the perspective of the supreme auditing institution. In: Bac, A. International comparative issues in government accounting. The similarities and differences between central government accounting and local government accounting within or between countries., Dordrecht: Kluwer Academic Publishers, pp. 1-7 Hogendoorn, C., Kok, L. & van Oosterroom, R. (2001). The die is cast: a comprehensive accrual accounting system for the central government of the Netherlands. Den Haag: Ministerie van Financiën, pp. 15. Korte, H. W. O. L. M. (2001). Dutch central government budgeting and accounting system. In: Bac, A. International comparative issues in government accounting. The similarities and differences between central government accounting and local government accounting within or between countries., Dordrecht: Kluwer Academic Publishers, pp. 9-18. Ministerie van economische zaken (2003). Jaarverslag ministerie van economische zaken 2002. Den Haag: EZ , pp. 226. Ouda, H. A. G. (2001). Central governmental accounting of Egypt and the Netherlands: similarities and differences. In: Bac, A. International comparative issues in government accounting. The similarities and differences between central government accounting and local government accounting within or between countries., Dordrecht: Kluwer Academic Publishers, pp. 71-90. Scheers, B., Sterck, M., Van Reeth, W. & Bouckaert, G. (2002). Internationaal vergelijkend onderzoek naar de modernisering van de financiële cyclus en de beleids- en beheerscyclus: Begroting en planning. Steunpunt Bestuurlijke Organisatie Vlaanderen , pp. 365. Bram Scheers 47 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Van Oosteroom, R. (2002). The quality of public expenditure - challenges and solutions in results focussed management in the public sector. Netherlands. Parijs: OECDPUMA, pp. 104-116. Spoor financieel management 48 Hoofdstuk 4: The Netherlands APPENDIX: EXTRACTS FROM THE FINANCIAL STATEMENTS 2002 OF THE MINISTRY OF ECONOMIC AFFAIRS 1.1. The accounts of the commitments, expenditures and receipts, accompanied by explanatory notes Bram Scheers 49 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 1.2. The trial balance, accompanied by explanatory notes Spoor financieel management 50 Hoofdstuk 5: Sweden HOOFDSTUK 5 SWEDEN 5.1. DESCRIPTION OF THE ACCOUNTING REFORMS 5.1.1. Accounting functions 5.1.1.1. Historical overview of the reforms Initiative Period Objectives Performance management 1988 - Accrual accounting Late 1980s (start up) 1993 (implementation) 1997 (start up) 2000 (publication White Book) VESTA or the Performance Budgeting Project - To introduce flexibility in the use of resources, To introduce flexibility in spending over fiscal years, To shift the focus from resources to performance. To introduce an accrual accounting system in central government, To facilitate the implementation of management by results. To use the same scope, principles and presentation format in budgeting and in the financial accounts by moving towards an accrual-based budget, To install a structure for performance management and control. Table 5.1 – Historical overview of the accounting reforms in Sweden. Flexibility and the focus on performance were key words in the performance management reform at the end of the eighties. These were linked to an increase in accountability for financial and operating results. The annual report is a very important tool in this respect. From 1993, all government agencies have had to submit their annual financial and performance statements on an accrual basis (Lundqvist, 2002 pp.158). Since 1997, the task of developing improved financial management systems has mainly been carried out by the VESTA project (Regeringskansliet, 2000a pp.4). The White Book which was presented as a result of the VESTA project proposed a structure for performance management and control that is two-dimensional: an activity dimension and an institutional dimension consisting of the agencies. This means that both the budgeting and the follow-up will be done in both dimensions. The overall aim is to make possible a clearer linkage between objectives, outcomes and costs. Thereby, the co-ordination between management by results and general financial management is supposed to increase. The currently applicable accounting legislation is the Budget Act of 1988 (see section accounting legislation and standards). 5.1.1.2. Actors involved in the reforms The following table gives an overview of the actors who play an important role in the achievement of the accounting reforms: Bram Scheers 51 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Actor Role Swedish National Financial Management Authority or Ekonomistyrningsverket (ESV) - Ministry of Finance or Regeringskansliet - Swedish National Audit Office or Riksrevisionverket - To be the government agency for financial management in Sweden, To participate in developing and improving the methods for performance and financial management for both the agencies and central government, To develop generally accepted accounting principles (GAAP) for the central government, To issue the main accounting regulations, To consolidate the accounting information, To develop statistics on the central government economy. To work on the improvement of the instruments and tools for budgeting and management introduced during the 1990s, To implement the issues of the VESTA project, To propose changes to the ordinance on the annual reports and budget documentation. To issue guidance on the annual report, To discuss accounting issues. Table 5.2 - Actors involved in the accounting reforms in Sweden. ESV is the government agency for financial management in Sweden. Its objective is high quality financial management. As regards accounting, ESV develops GAAP and supplementary regulations for the central government. ESV has an advisory board to discuss accounting issues. The board has representatives from the private sector, the local government and central government agencies including the National Audit Office. Somebody with experience from accounting research is also to be presented. The number of meetings are approximately five a year. The Ministry of Finance is responsible for proposing changes to the ordinances decided by Government Cabinet. These proposals are often based on reports from ESV. In order to get support from the other ministries ahead of the decision there is a formalised process for the Ministry of Finance to follow. In 1998, the National Audit Office issued guidance on the annual report. The guidance presents good example and includes guidance on how information can be presented in the annual report. Since then, it has not issued any guidance on accounting. The National Audit Office has a rather close cooperation with ESV on accounting issues. It has a representative in the advisory board on accounting issues and an official of ESV participates in meetings on accounting issues regularly held by a group of auditors. On July 1, 2003 a new State Audit Institution, called Riksrevisionen, was created in Sweden. The new organization replaces Riksrevisionsverket and the Parliamentary Auditors, which both ceased to exist. The future will show what role the new National Audit Office will play concerning the accounting issues. Spoor financieel management 52 Hoofdstuk 5: Sweden 5.1.1.3. Pretext of the reforms At the end of the eighties, the performance management initiative was launched in Sweden. The delegation and decentralisation of power to management required a greater focus on accounting and analysis. As a consequence, one of the preconditions for the success of this initiative was the introduction of accrual accounting. The main reason for introducing accrual accounting in the Swedish central government in 1993 was thus to facilitate the implementation of performance management (The Swedish National Financial Management Authority (ESV), 2003b pp.5). Accrual accounting was considered essential as managers enjoy total flexibility in their choice of inputs and therefore require information on the full cost of each input to be able to manage effectively. 5.1.1.4. Objectives of the reforms Accrual accounting, next to framework appropriations, was seen as a precondition for the performance management project. A new accounting model was introduced which makes it possible to monitor performance, for example total costs of government programmes and activities. It also facilitates the analysis of more specific information such as cost per output. Complete cost and management accounting were thus made possible. Together, these initiatives should lead to a more efficient administration and also to the strengthening of the possibilities available to the Government and Parliament to manage and control the administration. 5.1.1.5. Conclusion: functions of the reforms The direct goal of the implementation of accrual accounting was to facilitate results management. By introducing accrual accounting, appropriate conditions were created for high levels of productivity and efficiency in the use of government resources. The attention was on the management function. However, it was also the intention to achieve greater transparency, better financial control and better financial awareness in general. 5.1.2. Accounting procedures 5.1.2.1. Accounting legislation and standards The Budget Act of 1988 regulates the relationship between the Parliament and the Government in the area of financial and performance management. The agencies’ accounting is to follow Generally Accepted Accounting Principles, slightly adapted to the specific needs of the public sector. The Government Cabinet and ESV issue the main accounting regulations (Lundqvist, 2002 pp.161). The Government Cabinet issues ordinances as e.g. the bookkeeping ordinance and the ordinance on the annual reports and budget documentation. The latter ends with an authorisation to ESV to issue supplementary regulations that include more detailed rules and clarifications. There are two types of supplementary regulations: rules and recommendations. The former are mandatory, but also the latter can be regarded as mandatory as they are seen as good accounting practice and as the agencies need to explain all deviations. Additions and changes to the supplementary regulations are normally made once a year. All regulations concerning central government accounting and financial management are Bram Scheers 53 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen gathered in a book which is issued each year in a new edition. The whole book (in Swedish) is available on the website of ESV9. The accounting regulations in central government follow very closely the laws (the Annual Accounts Act and the Bookkeeping Act) and standards in the private sector. This means that the Swedish regulations are quite similar to the standards of the former International Accounting Standards Committee (reconstituted in 2001 as the International Accounting Standards Board) in the private sector. Of course, special characteristics of the public sector have to be considered. During the last couple of years, there has been a larger focus on the standards issued by the IFAC Public Sector Committee. The central government regulations are thus similar to the Swedish private sector requirements as well as the IFACPSC standards. However, they are somewhat less comprehensive and less detailed than the other two areas (Lundqvist, 2003 pp.39). ESV also publishes manuals to give in-depth information on specific accounting issues. These manual are not mandatory even though they are relied on to quite large degree. In 1998, ESV decided to develop a conceptual framework for the preparation and presentation of financial statements in central government and a preliminary version was finished in 2000. The framework describes underlying assumptions and principles for accounting, such as the elements of various reports and qualitative characteristics. The framework has primarily been produced to provide guidance for the formulation of standards, i.e. an ESV internal document, and thereby to create uniformity in the government regulations concerning financial accounting in Sweden (The Swedish National Financial Management Authority (ESV), 2002). Finally, Sweden also has to consider the requirements of the international standard System of National Accounts and the IMF’s Government Finance Statistics (GFS). 5.1.2.2. Valuation rules Assets are normally valued at acquisition value (less depreciation, if applicable) (Lundqvist, 2002 pp.162). The acquisition value or historical cost is regarded as the resources sacrificed for the acquisition of the asset, which should be distributed over the economic life of the asset. This valuation rule is also used by the private companies in Sweden. A fixed asset that is received free of charge shall be recognised as its market value. Current assets are recognised either at acquisition value or at fair value if the latter is lower. 5.1.2.3. Most important actors The most important actors in the accounting process are the agencies and ESV. There are approximately 300 agencies or authorities in Sweden. Their size, structure and types of operations vary considerably. Each agency is responsible for its own accounting and reports. The accounting methods are designed as if the agencies are completely independent units, even though they are part of central government and therefore not independent legal entities. Each agency decides e.g. on its own depreciation periods. The chart of accounts and the chart of object codes form the agency’s accounting plan. ESV has developed a standard chart of 9 http://www.esv.se/index.html Spoor financieel management 54 Hoofdstuk 5: Sweden accounts (including nine account classes) that can be used by the agencies but it is not compulsory. As regards the detailed accounts, it is common that the agencies make modifications and add new accounts so the chart better suits their specific needs. The plan of reporting codes, which is compulsory, is based on the plan of accounts. There is no structure of the chart of object codes that is compulsory. The chart is necessary for performance reporting and to monitor the cost of different activities in an agency as well as the cost of products and different kinds of services. It is also used for management accounting (The Swedish National Financial Management Authority (ESV), 2001 pp.23). Each accounting entity or agency is obliged to make a report each month on the financial outcome and to send it electronically to the government accounting system (a database at ESV). The information is structured according to the plan of reporting codes. With the aid of the agencies’ reports on revenue and expenditure, ESV publishes the monthly outcome of the central government budget during the course of the budget year. Finance statistics are reported by the agencies once a quarter. ESV compiles this information and then transfers it to Statistics Sweden. A semi-annual report is submitted by the 15th of August. Each agency pays its own bills and expenses, and thus there is no central government function for this purpose. Each agency has its own bank account, but these bank accounts are all connected to the government central current account. Each agency normally has its own accounting system. ESV distributes and supports a commercial accounting system, called Agresso, which the agencies are recommended to use. However, if an agency wants to use another system, it can usually buy any system that is offered on the open market (The Swedish National Financial Management Authority (ESV), 2001 pp.9). ESV and the Ministry of Finance prepare the consolidated (whole-of-government) annual report. ESV has to provide accurate, reliable and relevant information on central government finances. Therefore, the agency collects information from the agencies and arranges all this information in a structured way. Co-operation with the agencies and ministries is crucial in order to guarantee the quality of the data ESV receives from the agencies. In mid-April the Government submits a written communication to Parliament containing an annual report for the central government sector showing the actual levels of central government income and expenditure in the previous fiscal year. 5.1.2.4. Required reports Once a year, all agencies have to submit an annual report including financial statements and a performance report. The Government is regarded as the main receiver as the agencies do not have to present their annual report to Parliament. Since 1996 it is also stipulated in the Swedish budget law that government shall submit an annual report to Parliament each year. Under the heading “follow-up, forecasts and outcome” it is stated that as soon as possible, but no later than nine months after the concluded fiscal year, the Government shall have an annual report presented to Parliament (Lundqvist, 2003 pp.36). Bram Scheers 55 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 5.1.3. Accounting format 5.1.3.1. Cash or accrual accounting? From July 1993, all agencies have had to use accrual accounting as the general accounting principle. The general accounting comprises total operations irrespective of financing. The accounting model integrates external and management accounting through the chart of accounts and the chart of object codes. The accounting model also comprises general accounting and state budget accounting including appropriations and general income, such as taxes. As the general accounting is on an accrual basis and the state budget accounting is still partly on a cash basis and partly on a modified accrual basis, the accounting model needs to take this into consideration. For example, special accounts are used for cut-off items, such as accrued expense or deferred expenditure. These accounts are either included or excluded, depending on the report produced or the type of analysis required (The Swedish National Financial Management Authority (ESV), 2001 pp.10). 5.1.3.2. Format of the annual report Annual reports are submitted by the agencies to the Government Cabinet and the National Audit Office no later than February 22 the following year. The reports constitute an important input to the preparatory work on the state budget in the Government (The Swedish National Financial Management Authority (ESV), 2003b pp.7). The annual reports contain both financial data (the financial statements) and information on activities (the performance report). The ordinance for the annual reports of government agencies states the following (The Swedish National Financial Management Authority (ESV), 2003b pp.8): “The agency shall report and comment on the results of its operations in accordance with the objectives and the demands for information stated by the Government in the annual directives or in any other decision. In cases where the Government has decided not to specify what information the agency should report back to the Government, the agency shall report and comment on changes in output with respect to volume, cost and quality.” In Sweden, there is no annual report for each department. Instead, there is one annual report for the Government Office including all the departments. This annual report, however, is regarded as equivalent to an agency’s annual report (Lundqvist, 2003 pp.19). 5.1.3.3. Format of the financial statements The financial statements are, as mentioned above, included in the annual report. They comprise the following: - the statement of financial position, - the statement of financial performance, - the cash flow statement, - the appropriation report (on cash basis), - notes and supplementary schedules to the financial statements. Spoor financieel management 56 Hoofdstuk 5: Sweden In the appendix, the ESV statement of financial position and the statement of financial performance for the year 2002 are given (The Swedish National Financial Management Authority (ESV), 2003a). No English illustrations were found for the other statements and reports. In the appropriation report the agency reports on the outcome of the appropriations that the agency has at its disposal and on the income headings in accordance with the breakdown made in the Government approval document. 5.1.3.4. Time horizon Section 44 of the ESV conceptual framework states (The Swedish National Financial Management Authority (ESV), 2002 pp.16): “Users must be able to form an opinion on trends in respect of the financial position of the entity and changes in this position, and on trends in respect of revenues and expenses by being able to make comparisons between financial statements over a period of time.” In practice, the statements give information about the reported year and the preceding year (see e.g. the statements of ESV in the appendix). There is thus a two years time horizon. 5.1.3.5. Consolidation The central government annual report and consolidated financial statements include the operations of all agencies and departments, and are thus based on the agencies’ annual accounts. Internal transactions between different agencies are eliminated. The first consolidated annual report for the whole central government was produced for the fiscal year 1994-1995. Up till now this report has mainly included financial information (an operational statement, a balance sheet, a cash flow statement and a report on the outcome of the government budget). The agency performance report thus has no direct counterpart in central government as a whole. However, it is discussed that the report should also include performance information. Initially, the submission of a consolidated annual report was not required. The consolidated financial statements have, however, gained in importance and the submission is now stipulated in the Swedish budget law. The consolidated accounts are presented on an accrual basis (Lundqvist, 2002 pp.159). With the evolution towards a budget on accrual basis, the consolidated whole-of-government accounts may play a much more central role than today (Regeringskansliet, 2000b pp.14). 5.2. IMPLEMENTATION STRATEGY OF THE REFORMS The Ministry of Finance provides a limited amount of advisory services to the other ministries on accounting issues. Advisory services or education to the preparers of accounts and annual reports, i.e. agencies, are normally not provided. However, ESV provides a wide range of information materials, advisory services, seminars, education and training. In 1998, also the National Audit Office issued guidance on the annual report. Since then, it has not issued any guidance on accounting. In their daily work the auditors often discuss accounting issues with Bram Scheers 57 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen the preparers of accounts. However, advisory services do not seem to be highly prioritised. It is thus mainly ESV which is the institutional support for the accounting reforms. Education, training and information activities were held before the launching of the accrual accounting model. Written material was produced to give an overview of the reform and to explain some of the reasoning behind the model. Training, mainly through seminars, was an important way of spreading information. The accounting reforms are comprehensive as all agencies have to use accrual accounting and must prepare an annual report. The introduction of accrual accounting appears to have proceeded smoothly as the quality of the previous accounting system was very high (Blöndal, 2001 pp.47). Also, the implementation of accrual accounting was incremental: the Swedish government has introduced accrual accounting by taking one step at a time (Lundqvist, 2002 pp.159). The first step was taken at the agency level. After gradual implementation over a period of two years, accrual accounting was fully implemented in the Swedish central government from July 1, 1993. A new commercial accounting system, called Agresso, which is used by many private companies worldwide was introduced. Through this it was possible to move from centralisation towards decentralisation. The second step was taken when consolidated accounts were presented on an accrual basis. This was the case from the financial year 19941995. However, this was not the aim of the reform, but rather a possibility provided. Now, it is stipulated in the budget law. Another reason for the smooth implementation was that the budget principles were not changed. However, this has lead to a dual system that, in the long run, has become a problem. It has complicated the accounting model and the accrual-based financial statements have not received the attention that they should have received. That is why the Swedish government now wants to implement an accrual-based budget. This is seen as the next step in the accrual evolution and is dealt with in the VESTA project. Finally, the reforms are legally anchored in the law and ordinances. For example, the submission of a whole of central government annual report is, since 1996, stipulated in law. REFERENCE LIST Blöndal, J. R. (2001). Budgeting in Sweden. OECD Journal on Budgeting, 1 (1): 27-57. Lundqvist, K. (2002). Current state and latest developments of governmental accounting in Sweden. In: Montesinos, V. & Vela, J. M. Innovations in governmental accounting, Boston: Kluwer Academic Publishers, pp. 157-65. Lundqvist, K. (2003). Accrual accounting regulation in central governments - a comparative study of Australia, Sweden and the United Kingdom . Stockholm: ESV, pp. 70. Regeringskansliet (2000a). Financial management for effectiveness and transparency. Stockholm: Regeringskansliet, Ministry of Finance, pp. 14. Spoor financieel management 58 Hoofdstuk 5: Sweden Regeringskansliet (2000b). Performance budgeting in Sweden - outline of a reform programme. Stockholm: Regeringskansliet, Ministry of Finance, pp. 18. The Swedish National Financial Management Authority (ESV) (2001). Accrual accounting in Swedish central government. Stockholm: ESV, pp. 46. The Swedish National Financial Management Authority (ESV) (2002). Conceptual framework for the preparation and presentation of financial statements in central government. Version 1.0. Stockholm: ESV, pp. 26. The Swedish National Financial Management Authority (ESV) (2003a). Annual report 2002. Stockholm: ESV, pp. 52. The Swedish National Financial Management Authority (ESV) (2003b). Performance management in Swedish central government. Stockholm: ESV, pp. 21. Bram Scheers 59 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen APPENDIX: EXTRACTS STATEMENTS Spoor financieel management FROM THE ESV 2002 FINANCIAL 60 Hoofdstuk 5: Sweden Bram Scheers 61 Hoofdstuk 6: United Kingdom HOOFDSTUK 6 UNITED KINGDOM 6.1. DESCRIPTION OF THE ACCOUNTING REFORMS 6.1.1. Accounting functions 6.1.1.1. Historical overview of the reforms The following table gives an overview of the most important accounting reforms in the United Kingdom: Initiative Period Financial Management Initiative 1982 Next Steps Programme 1988 Objectives - White Paper Resource 1995 Accounting and Budgeting (RAB) in Government - Government Resources and Accounts Act (GRAA) - 2000 - To formulate objectives and output measures, To delegate responsibilities concerning finance and personnel towards line management, To improve the information flows. To introduce an organisational split concerning the policy preparation and the policy execution To propose the implementation of accrual accounting and budgeting To introduce an integrated planning and reporting cycle in which the governmentwide priorities are translated in departmental budgets and strategies, and parliamentary reporting on efficiency and effectiveness is done in the resource accounts, To draw up an accrual-based budget, To draw up resource accounts by means of accrual accounting rules. Table 6.1 – Historical overview of the accounting reforms in the United Kingdom. Accrual accounting has already been introduced in the seventies in certain government organisations, especially in the Non-Departmental Public Bodies10 (NDPBs). As a consequence of the Next Steps Programme initiative of 1988, all agencies started working with an accrual accounting system. So, only the departments continued working with a cashbased accounting system. The purpose of the RAB initiative was to change that. It led to the introduction of the currently applicable Government Resources and Accounts Act 2000 (GRAA). 6.1.1.2. Actors involved in the reforms Many actors are involved with the modernisation of the accounting system in the United Kingdom. The following table gives an overview of the most important ones: 10 A non-departmental public body is a body which has a role in the processes of national government but is not a government department or part of one. Bram Scheers 63 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Actor Role HM Treasury - Budget and Public Finance, - Financial Management Reporting and Audit, - Steering Committee on Resource Accounts and Budgets. The Financial Reporting Advisory Board to the Treasury (FRAB) - To develop and implement the Resource Accounting and Budgeting initiative - To advise the Treasury on the application of the financial reporting requirements and standards of the Resource Accounting Manual, which is used as the basis for the departmental resource accounts The Public Accounts Committee (PAC) - To thoroughly examine the proposed introduction of resource accounting and budgeting National Audit Office (NAO) - To examine the modernisation initiatives, To follow up whether the timetable is respected. Table 6.2 – Actors involved in the accounting reforms in the United Kingdom. HM Treasury, FRAB, PAC and NAO play a significant role in the accounting reforms in the United Kingdom. Their role is now described in more detail. HM Treasury was a very important actor for the introduction of Resource Accounting and Budgeting (RAB). HM Treasury was responsible for the development of the new system as well as for the follow up of the implementation. There was thus a strong and respected central agency in support of the reform. FRAB was established in 1996 with the aim of ensuring that resource accounts meet the best possible standards of financial reporting by following the United Kingdom Generally Accepted Accounting Practice (United Kingdom GAAP) as far as possible. The Board is chaired by an of the Treasury independent person. The members include representatives from the staff of the Comptroller and Auditor General (the external auditor of government and head of the National Audit Office), the Audit Commission (which audits local government and health organisations), the Accounting Standards Board (which sets the accounting standards for the private sector), government departments and other public bodies, the Treasury, the Office for National Statistics, the industry and the academic sector. The Treasury sets out the reporting standards to be adopted and publishes them to departments in the Resource Accounting Manual (RAM). The purpose of FRAB is to introduce an independent element into this process. As a consequence, the Board has to be consulted on all additions and changes, including proposals not to follow standard practice (Hepworth, 2002 pp.128). The powerful PAC is chaired by a senior member of the opposition and supported by the work of the Comptroller and Auditor General. The committee addressed some specific questions concerning RAB to the government on which Treasury had to produce an answer (Hepworth, 2002 pp.134). In the end PAC supported the switch to resource accounting which it believed would improve the clarity and quality of financial information available to Parliament. However, it took the view that the resource accounting system should not be Spoor financieel management 64 Hoofdstuk 6: United Kingdom dispended with until Parliament was satisfied that the resource accounting system provided the same levels of accountability and assurance as the cash-based system. Also the role of NAO in the RAB initiative should not be underestimated. The responsibility of NAO can, according to Hepworth, be summarised as follows (Hepworth, 2002 pp.140): - “to comment on the proposals for the application of United Kingdom GAAP by the Treasury, - to advise Parliament (the Public Accounts Committee) on the implications of the adoption of resource accounting and budgeting for parliamentary control, - to develop audit arrangements so that the auditor would be able to issue a “true and fair view” audit opinion, - to carry out audits of the “shadow” resource accounts during the implementation process, - to advise on the risks during the process of change and to monitor the program of change, reporting to the Public Accounts Committee as appropriate.” 6.1.1.3. Pretext of the reforms The pretext of the RAB initiative was rather micro-economic and combined with the management of the institutions. The system for authorising, controlling and accounting for public money had changed little since the middle of the nineteenth century. This system, based almost solely on cash, gave a distorted picture of the cost of providing services, building in perverse incentives and in particular a bias against essential long-term investment (HM Treasury, 2001a pp.1). The managers of the organisations thus had a lack of instruments in support of the management. 6.1.1.4. Objectives of the reforms The implementation of the new financial system was aimed at introducing the best practice from commercial accounting in central government. This would enable the managers to work efficiently and effectively and to contribute to the realisation of high quality government services. “This major reform of public finance brings to central government the highest standards of financial management and reporting used in the rest of the economy, providing better information for managers and better incentives to reward good management.” (HM Treasury, 2002b pp.2) 6.1.1.5. Conclusion: functions of the reforms Since the introduction of the Government Resources and Accounts Act in 2000 the accounting system is mainly seen as an instrument in support of policy and management. An accrual-based accounting system offers a lot of advantages in comparison with a cash and commitment accounting system. The RAB system also means a strengthening of the accountability function. The five schedules and the notes to the accounts (see section accounting format) together with the audit report form an extensive source of detailed Bram Scheers 65 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen information about the department. The whole-of-government accounts, to be produced in the future, will support the macro-economic policy. 6.1.2. Accounting procedures 6.1.2.1. Accounting legislation and standards The framework of the accounting principles and conventions for resource accounting in the departments is based on the United Kingdom Generally Accepted Accounting Practice (United Kingdom GAAP) (which is on its turn mainly based on the accounting and reporting requirements of the Companies Act 1985 which applies to private sector companies) and accounting standards, adapted to meet the particular requirements of central government and parliamentary control. The aim was to ensure broad consistency with accounting practice in the rest of the public sector and the private sector (Hepworth, 2002 pp.122). There is a general consensus that GAAP is founded upon: a. the accounting and disclosure requirements of the Companies Act 1985 (as amended by the Companies Act 1989); b. pronouncements by the Accounting Standards Board, principally comprising accounting standards - Statements of Standard Accounting Practice (SSAPs) and Financial Reporting Standards (FRSs) - and Urgent Issues Task Force abstracts; c. the body of accumulated knowledge built up over time and promulgated in (for example) textbooks, technical journals and research papers. Table 6.3 - The United Kingdom Generally Accepted Accounting Practice (HM Treasury, 2003a pp.13). After all, the Government Resources and Accounts Act 2000 (GRAA) requires that government follows, as far as is practicable, the accounting standards used in the private sector as required by the Companies Act. The requirement to consult FRAB was placed on a statutory footing in GRAA (HM Treasury, 2001a pp.16). FRAB reviews changes proposed to RAM, which the departments are required to follow in preparing their resource accounts. GRAA also requires the Treasury to appoint an Accounting Officer for each department. The Accounting Officer has to prepare the departmental resource accounts and to hand these over to the Comptroller and Auditor General. Treasury publishes two documents in which the guidelines of the accounting system are worked out: Government Accounting11 and the Resource Accounting Manual12. The latter is the technical accounting guide that complements the former. The different entities then can draw up specific guidelines which are sufficiently detailed to satisfy their unique circumstances. The European System of Accounts sets particular requirements on the reporting of fixed assets. These have to be taken into account when the whole-of-government accounts are 11 The Government Accounting 2000 can be found at http://www.governmentaccounting.gov.uk/current/frames.htm 12 The Resource Accounting Manual, 2002-2003 Edition published in February 2003 is available at the following website: http://www.resource-accounting.gov.uk/current/frames.htm Spoor financieel management 66 Hoofdstuk 6: United Kingdom drawn up. The compatibility of the resource accounts with the national accounts balance sheet data should be improved. 6.1.2.2. Valuation rules The valuation rules are based on the debatable modified historical cost accounting principle (= the current/fair value principle), by which fixed assets, investments in current assets and stocks are valued at current values: “There was some disagreement with the proposal to apply the modified historic cost methodology for valuation of assets, which does not reflect current practice within the private sector.” (Hepworth, 2002 pp.132) 6.1.2.3. Most important actors Actor Role Department - The Accounting Officer - HM Treasury - The departments have considerable operational responsibilities without the need to defer to central decisions, Each department has to prepare a consolidated set of resource accounts. To be responsible for both operational and service management, and for all aspects of finance and accounting that is relevant to the management of the service To collect the departmental accounts in order to publish consolidated statements Table 6.4 -Actors involved in the accounting procedure. Departments have considerable responsibilities. The resource accounting rules for example specify that assets have to be valued and depreciated, but the way in which valuations are done in practice and the periods for depreciations are left to the judgement of the departments. The United Kingdom operates a unified system of management which is embodied by the Accounting Officer (Hepworth, 2002 pp.116). HM Treasury is required to appoint a principal accounting officer for each department. It is argued that an essential requirement of good public management is that the manager has a comprehensive responsibility. If this is not the case, the optimal incentive to ensure that the accounting system produces the necessary information will not be available. This system is unlike some European countries where there can be separate management and financial control hierarchies. The implementation of RAB has not essentially changed the role of the Accounting Officer. However, a number of different types of Accounting Officer have emerged from the focus on the department as a defined reporting entity and as a result of the requirements of the GRAA: principal accounting officers, additional accounting officers and agency accounting officers. The Accounting Officer is now also required to produce a Statement of Internal Control (SIC) alongside the accounts. Bram Scheers 67 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Resource accounting has changed the role of the accountants in government. Their influence and responsibilities have increased significantly. An evolution from a lower management position towards a central position with key responsibilities has taken place. There exists a Head of Government Accountancy Service. This appointment used to take place in a small department, but now forms a key position within Treasury. In order to enable a successful implementation, the number of accountants has also increased (see figure below). The reform thus has consequences for the official administrative power structures because of the growth in unaccustomed influence of accountancy. 1400 1200 1000 800 600 400 200 0 Junior Manager Middle Manager Senior Manager 03 20 02 20 00 2 20 91 - 89 19 19 19 82 19 19 83 Senior Civil Manager 73 Amount Qualified Accountants Period Figure 6.1 - Evolution qualified accountants in the departments and executive agencies (HM Treasury). 6.1.2.4. Required reports The resource accounting and budgeting system requires the production of financial statements for both departments (the Department Financial Statements) and the central government as a whole (the Whole-of-Government Accounts) (Hepworth, 2002 pp.125). The Department Financial Statements are audited annually by NAO which reports the findings to Parliament. The target was to produce Whole-of-Government Accounts (WGA) for the financial year 2005-2006. Because of different reforms in local government, which influence the local statements, the target has been moved to the financial year 2006-2007. The WGA will underpin the application of the golden rule13. The draw up of the WGA will make sure that the commitment, which was taken in the Code for Fiscal Stability, to produce consolidated statements will be kept. 6.1.3. Accounting format The Resource Accounting & Budgeting Framework consists of the following financial and non-financial documents. 13 “Over the economic cycle the Government will borrow only to invest and not to fund current spending” Spoor financieel management 68 Hoofdstuk 6: United Kingdom Figure 6.2 - Resource Accounting and Budgeting Framework (RAB) (HM Treasury, 2001b pp.5). The grouping Planning, Budgeting and Parliamentary Authority was dealt with in a previous report in which the budget and planning components were described (Scheers, Sterck, Van Reeth, and Bouckaert, 2002). The grouping Reporting is described in this report. 6.1.3.1. Cash or accrual accounting? The United Kingdom has chosen to work with an accrual accounting system. Resource accounts are prepared annually and summarise the financial results of the department for the relevant financial year. The resource accounts are based on the principles of accrual accounting and UK GAAP and in accordance with the Resource Accounting Manual. The Treasury defines resource accounting or accrual accounting as follows: Accruals accounting is a method of recording expenditure as it is incurred, and income as it is earned, during an accounting period. Table 6.5 - Definition of accruals accounting (HM Treasury, 2001b pp.13). Bram Scheers 69 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen The objective of RAB is to handle the limitations of a cash-based system and as a consequence to create a better management of the public capital. By providing resource accounting information, i.e. information on accrual basis, data about the long term consequences of the actions are given. The resource accounts consist of a number of reports and schedules which are discussed below. 6.1.3.2. Format of the annual report and accounts of departments The 2002-2003 edition of the RAM states that the annual report and accounts of the departments have to contain the following (HM Treasury, 2003b): The annual report and accounts of departments will include: a. an annual report b. a statement of the Accounting Officer’s responsibilities c. a statement on internal control d. the primary statements and notes to the accounts e. the audit opinions and report Table 6.6 – Format of the annual departmental reports. 6.1.3.3. Format of the department financial statements The financial statements of the resource accounts differ somewhat from the statements produced in the private sector in order to take into account the context and the nature of central government. Moreover, changes were necessary to make the financial information in the resource accounts comparable with the departmental resource-based estimates. Formerly, expenditure was reported against the cash votes within the departments. Nowadays, resource accounts are reported against a whole department. The reporting entity has thus changed. Departments now prepare an annual report and consolidated resource accounts covering all entities within their departmental boundary. The departmental boundary includes the following entities: a. supply-financed agencies, b. non-agency parts of both the department accounted for through the supply process and other bodies whose expenditure is accounted for through the supply process, including nonexecutive non-departmental public bodies (NDPBs), such as Advisory NDPBs and Tribunal NDPBs, c.exceptionnaly, executive NDPBs or other public bodies not accounted for through the supply process where there are good control reasons for consolidation, d. National Health Service (NHS) health authorities and primary care trusts. Table 6.7 - The departmental boundary (HM Treasury, 2003b). Consolidated departmental resource accounts are produced by adapting and connecting financial information from the financial statements of the individual entities within the departmental group. The result of the changed reporting entity is that an Accounting Officer Spoor financieel management 70 Hoofdstuk 6: United Kingdom (the Principal Accounting Officer) may now sign a resource account which includes elements which were previously accounted for by another Accounting Officer responsible for a separate appropriation account. Certain Accounting Officers (the Additional Accounting Officers) thus no longer have an account to sign because their activities are accounted for as part of the overall departmental operation (HM Treasury, 2002a pp.2). The following table gives an overview of the content of the required financial statements (Hepworth, 2002 pp.126): The financial statements to be published comprise the following: - Schedule 1: Summary of Resource Outturn: the parliamentary control schedule comparing outturn with estimate for both resource expenditure and the overall cash requirement; - Schedule 2: i) Operating Cost Statement: showing resources consumed during the year in support of both the department’s own administration expenditure and its program expenditure, net of departmental income; ii) Statement of Recognised Gains and Losses; - Schedule 3: Balance Sheet: showing the assets and liabilities at the year end, which are represented by taxpayers’ equity; - Schedule 4: Cash Flow Statement: analysing the net cash flow by headings, including operating activities, capital expenditure and financing; - Schedule 5: Resources by Departmental Aim and Objectives: analysed by aim and objectives; and - Notes to the accounts: explaining and amplifying the information in the previous schedules. Table 6.8 - Format of the department financial statements. Schedules 2, 3 and 4 correspond with the schedules used by the private sector. In the report “Managing Resources: Full Implementation of Resource Accounting and Budgeting”, the Treasury illustrates these five schedules by means of the main headings using the 1999-2000 accounts of the Department of Culture, Media and Sport. The illustrations are given in the appendix. A more detailed explanation of the format of the different schedules is given in the RAM. 6.1.3.4. Time horizon The resource accounts give information about the relevant financial year, as well as figures on the preceding year. Thus, the outturn for 2001-2002 is placed next to the outturn of 20002001 in the resource accounts 2001-2002. 6.1.3.5. Consolidation GRAA requires the publication of a set of Whole-of-Government Accounts (WGA). Government covers the whole of the public sector, although no final decisions have yet been taken on what will fall within the WGA. The same accounting principles as underlie resource accounting will be used. Until then, the consolidated financial statements will be based on a cash basis. The objective of the WGA is on the one hand to provide better data to support the golden rule, and on the other hand to allow the governmentwide balance sheet to be used in fiscal management (Hepworth, 2002 pp.126). Bram Scheers 71 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Figure 6.3 - Whole-of-Government Accounts (HM Treasury, 2001b pp.18). As the whole public sector has introduced accrual accounting on broadly the same basis, the development of WGA should be facilitated. The main practical difficulty is perceived to be the elimination of intra public sector transactions and balances. 6.2. IMPLEMENTATION STRATEGY OF THE REFORMS 6.2.1. General The introduction of resource accounting is a dynamic process. To ensure the process is sufficiently documented and understood, annual editions of RAM are published. The list of issues in the latest edition indicates a continuous process of development. The announced timetable for consultation and implementation of resource accounting and budgeting was the following: - to implement resource accounting in the majority of departments by 1 April 1997 and in all departments by 1 April 1998, the first year in which resource accounts were to be published and laid before Parliament would be 1999-2000, the introduction of resource budgeting across government, to consult on how a resource-based Public Expenditure Survey would work in practice, partial resource-based Spending Review in 2000, dependent on the achievement of the above mentioned target data and the results of further consultation, to consult Parliament and others on how expenditure might be controlled on a resource basis and on the consequent reporting arrangements, the consultation period would last until 31 January 1995. Government would then publish as soon as possible its detailed proposals for resource budgeting and the implications for Parliament. Table 6.9 – The announced timetable of the implementation of RAB. This timetable has been followed quite strictly as we can derive from the following citation of Hepworth (Hepworth, 2002 pp.131): Spoor financieel management 72 Hoofdstuk 6: United Kingdom “The experience in the United Kingdom is that frequently the timetables for such innovative reforms tend to slip. However, in the event, this has not occurred.” To demonstrate that the implementation program was in accordance with this timetable, four trigger points were identified (HM Treasury, 2001c pp.6): - “stage 1 approval” (April-December 1998) involving the Treasury receiving from individual departments confirmation that they had accounting policies and systems in place which would enable them to produce meaningful resource accounts, - an assessment of departments’ opening balance sheet for 1999-2000 (April-June 1999), - “stage 2 approval” including an audit by NAO of departments’ dry run resource accounts for 1998-1999, - departments make their “shadow” resource-based Estimates for 2000-2001 available to their select committees. Treasury and NAO then accurately monitored the departments’ performances against these trigger points. However, the trigger points were not the only monitoring instrument. Treasury as well as NAO had in place a continuing monitoring process to measure individual departments’ progress. It was foreseen that the RAB project would extend over eight years. It was also planned to work with “double-running” accounting systems or two sets of accounts during three years, namely from 1998 to 2001. In the first year, the resource accounts were drawn, but not published. In the second year they were also published and in the third year, they were voted on. The parallel accounting systems are now abolished and replaced by one accounting system. The fact that the announced timetable exceeded the lifetime of one Parliament indicates the broad political support for the initiative. This was confirmed when the Labour party replaced the conservative government in 1997. The proposals were not changed fundamentally; on the contrary, they have even been reinforced. It can be stated that the steering of the reforms is top-down and that there is a lot of institutional support by the Treasury and NAO. The development as well as the practical guidance has been led by HM Treasury. The reforms are comprehensive as they apply to all departments. The accounting reforms may also be described as rather incremental and systematic. A clear timetable was announced to introduce the reform step by step and with a clear systematic. RAB can be legally enforced as the reform is legally anchored in the Government Resources and Accounts Act 200014. 6.2.2. Critical success and failure factors During our research visit to the United Kingdom from 13 October 2003 until 17 October 2003, interviews were taken at HM Treasury, NAO, the Public Accounts Committee, Cabinet Office, 2 departments (the Department of Culture, Media & Sports and the Department for International Development) and 2 executive entities (Jobcentre Plus and Victoria & Albert Museum). These interviews showed some critical success and failure factors concerning the implementation of resource accounting. 14 The law can be found at the following website: http://www.hmso.gov.uk/acts/acts2000/20000020.htm Bram Scheers 73 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen The critical success factors are the following: - there was a broad political support for the initiative as PAC was strongly involved with the implementation of RAB, - the head of the Treasury was also a strong supporter of the reform, - sufficient time was provided to implement the reform (the White Paper appeared in 1995 and RAB was fully implemented for the financial year 2001-2002), - the use of trigger points to follow up the implementation, - the departments may choose which software to use in order to support the RAB framework, - the set up of WGA is first tested or run on an experimental basis so that a lot of difficulties can be identified beforehand. The following may be mentioned as critical failure factors: - in general it is stated that the politicians do not understand the resource-based documents. As a consequence there is a limited parliamentary use and the perception that parliamentary accountability has decreased. In order to handle this, HM Treasury plans to review and simplify these documents as far as possible, - it is difficult to make the public servants think in accrual terms (cultural shift), - the analytical accounting system has not well been elaborated and it is rather used retrospective, - there was/is insufficient appropriate personnel (accountants) available within the departments. In order to set up the opening balance many departments hired accountants, - the practical value (contrary to the theoretical) and the importance of schedule 5 is not that big because it is currently too subjective. NAO spends little time auditing schedule 5. The emphasis is on the first four schedules. As a consequence, schedule 5 is currently under review, - the integration of the commercial accounting standards with the parliamentary authorisation is a difficult issue. There is a lot of discussion about schedule 1, a schedule which deviates from these of the private sector in order to be consistent with the budget, - the departments consider the requirements of the central departments as very demanding, - the local and central accounts must be tuned to each other in order to draw up the WGA, - the publication of the WGA does not imply an incentive for the different actors because it is in favour of the community and not in favour of individual interests. Also a recent NAO report shows that departments and agencies still have a long way to go in order to realise the full benefits of the RAB reform. NAO assessed 46 departments’ and agencies’ progress in realising the full potential of accrual accounting to improve resource management. Some 28 per cent have made good progress implementing accrual-based accounting. They belong to the group in which monthly accrual-based management information and annual financial statements are produced by the same process. The focus of control is shifting to accrual-based targets and there is good use of financial and performance data in decision-making. Around 37 per cent of the departments are progressing towards accrual reporting, but management information on this basis is produced only periodically and budgetary control is based on a hybrid of cash and accruals. Approximately 35 per cent (16 departments), however, still rely mainly on cash-based budgets and management information and the preparation of accrual-based financial statements is a separate one-off exercise at the year end to meet external reporting and accounting requirements. As such, these departments Spoor financieel management 74 Hoofdstuk 6: United Kingdom have so far derived no or limited benefits from the new information. This slower progress was attributed to insufficient financial expertise; operational staffs’ lack of understanding and financial awareness; and older or incompatible IT systems (National Audit Office (NAO), 2003 pp.29). REFERENCE LIST Hepworth, N. (2002). Government budgeting and accounting reform in the United Kingdom. OECD Journal on budgeting, 2 (supplement 1): 115-161. HM Treasury (2001a). Better management of public services: resource budgeting and the 2002 spending review. Londen: HM Treasury, pp. 43. HM Treasury (2001b). Managing resources: full implementation of resource accounting and budgeting. Londen: HM Treasury, pp. 22. HM Treasury (2001c). Managing resources: how the resource accounting and budgeting project was managed. Londen: HM Treasury, pp. 19. HM Treasury (2002a). Managing resources: accountability. Londen: HM Treasury, pp. 7. HM Treasury (2002b). Managing resources: better decision taking in departments. Londen: HM Treasury, pp. 17. HM Treasury (2003a). Executive non-departmental public bodies: annual reports and accounts guidance. Londen: HM Treasury, pp. 137. HM Treasury (2003b). The resource accounting manual. 2002-2003 , Londen: HM Treasury National Audit Office (NAO) (2003). Managing resources to deliver better public services. Londen: NAO, pp. 51. Scheers, B., Sterck, M., Van Reeth, W. & Bouckaert, G. (2002). Internationaal vergelijkend onderzoek naar de modernisering van de financiële cyclus en de beleids- en beheerscyclus: Begroting en planning. Steunpunt Bestuurlijke Organisatie Vlaanderen , pp. 365. Bram Scheers 75 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen APPENDIX: EXTRACTS FROM THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF CULTURE, MEDIA AND SPORT Spoor financieel management 76 Hoofdstuk 6: United Kingdom Bram Scheers 77 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Spoor financieel management 78 Hoofdstuk 7: United States HOOFDSTUK 7 UNITED STATES 7.1. DESCRIPTION OF THE ACCOUNTING REFORMS 7.1.1. Accounting Functions 7.1.1.1. Historical overview of the reforms Initiative Period Objectives Chief Financial Officers (CFO) Act 1990 - Government 1993 Performance and Results Act (GPRA) Government 1994 Management Reform Act (GMRA) - 1996 - Federal Financial Management Improvement Act (FFMIA) - - Reports Consolidation Act 2000 - Joint Financial Management Improvement Program (JFMIP) Principals’ Initiative President’s Management Agenda (PMA) 2001 - Bram Scheers 2001 - To require the preparation of annual audited financial statements in conformity with applicable accrual standards, To create Chief Financial Officers (CFO) positions, To require that agency CFOs develop and maintain integrated agency accounting and financial management systems. To require agencies to submit strategic plans, performance plans and performance reports To require the audit of agency-wide financial statements, To require the preparation and audit of financial statement for the entire US Government. To direct auditors to report on whether CFO Act agencies are following systems requirements, accounting standards and the Standard General Ledger, To emphasize the need for the CFO Act agencies to have financial management systems that can generate timely, accurate, and useful information with which to make informed decisions and to ensure accountability on an ongoing basis. To allow an agency to combine its audited financial statements and its performance report into one annual report to provide a more comprehensive and useful picture of the services provided To make substantive deliberations and agreements focused on key financial management success, To significantly accelerate financial statement reporting. To improve financial management performance by ensuring that federal financial systems produce accurate and timely information to support operating, budget and policy decisions 79 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Accountability of Tax Dollar Act 2002 - To require annual audited financial statements from most executive branch entities not previously required to prepare and submit such reports Table 7.1 – Historical overview of the accounting reforms in the United States. Federal accounting reforms should be viewed in the context of cyclical waves of government management improvement reform. The results in the 1990s were made possible by activities in the previous two decades (Chan, 2002 pp.207). The US rapidly introduced a full accrual basis for its financial reporting. The enactment of the CFO Act in 1990 spearheaded this development. It required that agencies’ trust funds, revolving funds and substantial commercial activities be covered by accrual financial statements (Blöndal, Kraan, and Ruffner, 2003 pp.45). The management side of OMB was strengthened by the CFO Act. The legislation designated a deputy director of OMB as the CFO for the entire US Government and created similar CFO positions in the 2415 major executive departments and agencies which account for 99% of the US federal budget. The CFO Act is considered as the latest round of financial management reform. It laid the basics of financial management. Soon thereafter, the focus on finance was broadened to management by a series of legislation (GPRA, GMRA and FFMIA). These laws cemented a closer relationship between finance and management in general. GMRA extended the requirements for accrual financial statements to all of the activities of the agencies covered by the CFO Act and required that an annual government-wide financial statement be prepared on an accrual basis. There is thus a mix of accounting legislation which is currently applicable as for example the CFO Act, GMRA, FFMIA and the Reports Consolidation Act. Recently, there has been an increasing emphasis on improving financial management from the highest levels of government. This is illustrated by the JFMIP Principals’ Initiative and the President’s Management Agenda. 7.1.1.2. Actors involved in the reforms The following table gives an overview of the actors who play an important role in the achievement of the accounting reforms: Actor Role Federal Accounting Standards Advisory Board (FASAB) - Office of Management and Budget (OMB) - Office of Federal Financial Management - General Accounting Office (GAO) - 15 To promulgate applicable accounting and reporting standards for federal government, To improve the usefulness of federal financial reports. To issue circulars and guidance on financial management issues, To determine the form and content of the financial statements of federal agencies. To make recommendations looking to greater economy or efficiency in public expenditures, To follow up the implementation of the reforms, To set accounting standards for the federal All 14 Cabinet departments and 10 major agencies are subject to the CFO Act. Spoor financieel management 80 Hoofdstuk 7: United States Congressional Budget Office (CBO) - Senate Governmental Affairs Committee House Committee on Government Operations CFO Council - American Institute of Certified Public Accountants (AICPA) - Joint Financial Management Improvement Program (JFMIP) Steering Committee - government, To prescribe standards of internal accounting and administrative control. To participate in FASAB in order to offer insight regarding Congressional information needs To initiate the CFO Act To initiate the CFO Act To co-ordinate actions to improve financial management throughout the government To recognize FASAB as the GAAP standard setter for federal entities, To execute five-year reviews of FASAB. To promote strategies and to guide financial management improvement across government, To review and coordinate central agencies’ activities and policy promulgations, To act as catalyst and clearinghouse for sharing and disseminating information about good financial management practices. Table 7.2 - Actors involved in the accounting reforms in the United States. American presidents since Franklin Roosevelt have regarded financial management, including accounting, to be an executive function that should be under the administration’s control. However, Congress considered accounting policy to be an extension of its budget authority and oversight function. This was used as justification for the legislative branch’s involvement in making federal accounting policy. Specifically, the 1950 Budget and Accounting Procedures Act directed GAO, in consultation with OMB and Treasury, to prescribe accounting rules and procedures to be followed by executive departments and agencies, whose accounting systems also had to be approved by GAO (Chan, 2002 pp.204). The 1990 CFO Act, a legislative initiative from the Senate Governmental Affairs Committee and the House Committee on Government Operations (the two congressional committees with jurisdiction over managerial oversight), did not alter GAO’s status of the government’s auditor, but added a complication to the already complex jurisdictional issue of who should set federal accounting standards. It authorised OMB to determine the “form and content” of financial statements of federal agencies, but did not change the GAO’s long-standing role in prescribing accounting standards. To ensure the relevancy of federal accounting standards, the secretary of the Treasury, the director of OMB, and the Comptroller General of GAO by 1990 reached an agreement to a cooperative approach to the standard-setting process by establishing the Federal Accounting Standards Advisory Board (FASAB). The membership of FASAB was carefully calibrated to reflect the interests of all concerned: three from the sponsors, two from the federal agencies, one from the Congressional Budget Office (CBO), and three public (i.e. non-federal) members. Over the next decade, FASAB would recommend these officials to issue numerous accounting and reporting standards. The FASAB acquired greater stature and independence when its standards were recognised as Generally Accepted Accounting Principles (GAAP) by the AICPA in late 1999 (Chan, 2002 pp.205). AICPA recently appointed a panel to review FASAB’s continuing authority to set GAAP for the federal government under rule 203 of the AICPA Code of Conduct. Bram Scheers 81 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Federal accounting rules are thus promulgated by an advisory board sponsored by the principal federal fiscal officers and recognised by the auditing profession. An accounting standard is typically formulated initially as a proposal after considering the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies and the needs for other users of federal financial information. The proposed standard is published in an Exposure Draft for public comment. The Board considers comments and decides whether to adopt the proposed standard, with of without modification. After review by the three officials who sponsor FASAB, the Board publishes the adopted standards. The CFO for the entire US Government and the CFOs of the executive departments and agencies form a CFO council. Other members are the OMB’s Controller and Treasury’s Fiscal Assistant Secretary. They are looking amongst other things at ways to develop and maintain integrated accounting and financial management systems. They are to advise agencies and coordinate their activities on financial management matters. The JFMIP Steering Committee is responsible for the general direction of the Program. Leadership and program guidance are provided by the four Principals of the JFMIP: the Secretary of the Treasury, the Directors of OMB and the Office of Personnel Management, and the Comptroller General of the United States. 7.1.1.3. Pretext of the reforms Persistent and record levels of federal deficits, reaching close to $300 billion in fiscal year 1992, created a perception that the federal government’s financial house was not in order. A sense of urgency emerged that more concrete actions were necessary. In the 1980s, financial management, a routine bureaucratic function, became politically visible when frauds, waste and abuse were attributed to financial management. When investigations were conducted, a frequent finding was that the financial information from agency accounting systems was unreliable and inconsistent. This gave rise to the need for better federal accounting as part of improvements to federal financial management during the past decade (Chan, 2002 pp.204). 7.1.1.4. Objectives of the reforms The purposes of the CFO Act were to ensure improvement in agency systems of accounting, financial management and internal control; to assure the issuance of reliable financial information; and to deter fraud, waste and abuse of government resources (Federal Accounting Standards Advisory Board (FASAB), 2003a pp.19). The CFOs were introduced in order to bring cohesion and effectiveness to the financial function. The new federal accounting standards are aimed to improve the fulfilment of the government’s duty to be publicly accountable. They can be used to assess (1) the government’s accountability and its efficiency and effectiveness; and (2) the economic, political and social consequences of the allocation and various uses of federal resources. More recent legislation focuses on the modernization of the financial systems to generate reliable, useful and timely financial information throughout the year and at year-end so that informed decisions can be made. Spoor financieel management 82 Hoofdstuk 7: United States 7.1.1.5. Conclusion: functions of the reforms The accounting used to focus on monitoring budget execution. Today there is increased realisation that managing the government entails more than strict budgetary control. Competent public officials and financial managers make decisions and carry out transactions and activities to accomplish agency missions. Therefore, the accounting systems must support the management function so that information for decision making and monitoring the transactions and activities is provided. Another function is to provide data for the fair presentation of the government’s financial position and operations to external users. Under the influence of this internal and external orientation, government accounting and financial reporting has become more autonomous from budgeting. 7.1.2. Accounting procedures 7.1.2.1. Accounting legislation and standards The Budget and Accounting Act of 1921 is one of the foundations of the contemporary organizational and legal framework for the federal financial management. The Budget and Accounting Procedures Act of 1950 further realigned and defined financial management responsibilities. Amongst other things, this law gave GAO authority to set accounting standards for the federal government. The law requires the head of each agency to establish and maintain systems of accounting and internal control designed to provide, amongst other things, effective control over and accountability for all funds, property and other assets (Federal Accounting Standards Advisory Board (FASAB), 2003a pp.18). The Chief Financial Officers Act of 1990 requires federal agencies to prepare, and submit for audit, financial statements for the entire organization in conformity with applicable standards. Under this Act, this requirement applied to trust funds, revolving funds, commercial type activities and 10 pilot agencies. The Government Management Reform Act of 1994 required all the CFO Act agencies to have annual audited financial statements covering the entire agency. The Reports Consolidation Act of 2000 builds on this 1994 Act. FASAB standards have affirmed the important role of accounting and financial reports in monitoring budget execution and in ensuring compliance and deterring fraud, waste and abuse. The board also believes that federal financial reports should assist their users in evaluating the operating performance of federal agencies, and in assessing the impact of the federal government’s operations and investments on the financial condition of the nation. These objectives led FASAB to recommend cost accounting standards in addition to financial accounting and reporting standards (Chan, 2002 pp.206). The FASAB standards are recognized as GAAP for the federal government. The Board publishes the adopted standards in a Statement of Federal Financial Accounting Standards (SFFAS). It also publishes Statements of Federal Financial Accounting Concepts (SFFAC), which guide the Board in developing accounting standards and formulating the framework for Federal accounting and reporting. FASAB is currently working on the concepts project to ensure that the Federal Financial Accounting Standards are Bram Scheers 83 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen based on a sound framework of objectives and fundamental concepts regarding the nature of accounting, financial statements and other communications methods. Also OMB issues some OMB Circulars, Bulletins and Memoranda. OMB Bulletin 01-0916 for example requires agencies to consolidate their audited financial statements and other financial and performance reports into combined Performance and Accountability Reports and accelerates the deadline for submission (Office of Management and Budget (OMB), 2001). There are also six Title 2 accounting standards of the GAO Policy and Procedures Manual for Guidance of Federal Agencies which are still not superseded by FASAB issuances. 7.1.2.2. Valuation rules All assets should be recorded at historical cost. If not possible, the cost should be estimated fair value at the time acquired by the government. The fact that full accrual, rather than modified accrual, was recommended by FASAB meant that the federal government’s balance sheets would include present capital assets and long-term liabilities. Federal resources not recognisable as assets (e.g. national monuments) and federal responsibilities not recognisable as liabilities (e.g. social insurance benefits) are reported separately in a “Stewardship Report”. This approach acknowledges their importance and intractable conceptual and measurement problems. 7.1.2.3. Most important actors Since accountants and auditors have a professional image of financial discipline and conservatism, their profile was raised in the latest round of financial management reform launched by the 1990 CFO Act. Before, the financial managers, including accountants, were relegated to secondary roles and dominated by the budget offices. The CFO now holds one of the most important jobs in a department or agency and reports directly to the Secretary. The CFOs are charged with overseeing all aspects of financial management, especially the development and maintenance of integrated systems and the production of reliable financial information. The information is used in part to prepare audited agency financial statements which meet applicable accounting standards. The Treasury Department is the federal government’s cash manager and bookkeeper. There is no system of departments and agencies having accounts in commercial banks. Amongst other things, the Treasury performs central accounting functions. The Treasury is also required to provide periodic financial reports and the annual report to Congress. Thus, the most important actors are the CFOs and the Treasury as each agency and department prepares financial statements on a full accrual basis, and the Treasury Department consolidates these into the government-wide financial statements. 16 For the Bulletin see: http://www.whitehouse.gov/omb/bulletins/b01-09.pdf Spoor financieel management 84 Hoofdstuk 7: United States 7.1.2.4. Required reports According to OMB Bulletin 01-09, agencies were required to submit semi-annual interim financial statements in fiscal year 2002 and are to submit quarterly statements from fiscal year 2003 onwards (Office of Management and Budget (OMB), 2001 pp.14). Federal agencies are also required to submit annual financial or accountability reports (by the CFO Act) and performance reports (by GPRA) to OMB and Congress. To improve efficiency, the Reports Consolidation Act of 2000 allows agencies to combine financial data and performance data into one report and submit it to Congress and OMB within 150 days of the end of the fiscal year. OMB had urged agencies to submit the consolidated accountability reports since 1997 and in October 2002 instructed all agencies covered under the 1990 CFO Act to submit combined performance and financial reports. Thus, beginning with the FY 2002 reporting cycle, performance and accountability reports that present both performance and financial reports are required. It is also required that the Treasury provides periodic financial reports and the annual report to Congress. The JFMIP Principals have agreed to significantly accelerate financial statement reporting. From fiscal year 2004 onwards, audited agency financial statements are to be issued no later than November 15, just 45 days after the fiscal year ends. The US government’s audited consolidated financial statements become due by December 15 (Everson, 2001). 7.1.3. Accounting format 7.1.3.1. Cash or accrual accounting? The US federal government has long had a functioning budgetary accounting system that keeps track of the spending of budgetary resources in terms of obligations and outlays. Today there is increased realisation that managing the government entails more than strict budgetary control. As a consequence, accrual accounting is now a requirement for the federal government. The FASAB’s endorsement of the accrual basis has several new aspects. First, accruals apply to the entire federal financial reporting model. Second, full accrual rather than modified accrual was recommended. However, FASAB also requires the reconciliation of actual and budgeted financial results. As it lacks the authority to set budgeting standards, it accepts budgeting rules as the basis for making the comparison. The basis of accounting used is defined as accrual basis. However, considering that some federal government assets are not reported in the balance sheet the basis of accounting could be properly defined as a modified accrual basis (but very close to the accrual) (Cortes, 2001 pp.236). 7.1.3.2. Format of the annual report The CFO Act requires agency CFOs to prepare and transmit an annual report to the agency head and the Director of OMB including a summary of the reports on internal accounting and Bram Scheers 85 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen administrative control systems submitted to the President under the Federal Managers’ Financial Integrity Act. GPRA has led to performance reporting on a comprehensive basis. The Reports Consolidation Act of 2000 allows an agency to combine its performance report, as required by GPRA, with the audited financial statements, as required by the CFO Act, to provide a more comprehensive and useful picture of the services provided. OMB Bulletin 01-09 now requires agencies to consolidate their audited financial statements and other financial and performance reports into combined Performance and Accountability Reports (Federal Accounting Standards Advisory Board (FASAB), 2003a pp.9). The annual report or the “annual financial statement” of a reporting entity should consist of (Office of Management and Budget (OMB), 2001 pp.4): - a management’s discussion and analysis, - basic statements and related notes, - required supplementary stewardship information, - required supplementary information. In addition, the report may include “other accompanying information”. Each consolidated report must also include an assessment from the agency head verifying the reliability of the agency’s performance data and a summary from the inspector general addressing the agency’s management challenges. 7.1.3.3. Format of the financial statements The financial statements are included in the annual report under the topic “basic statements” (see above). The CFO Act requires that the financial statements include the following (Chan, 2002 pp.206): - a balance sheet, - a statement of net costs, - a statement of changes in net position, - a statement of budgetary resources, - a statement of financing, - a statement of custodial activities, when applicable. The body of the basic statements should contain summary information and the detail should be reported in notes to the statements. The illustrative format displays, from the OMB Bulletin 01-09, for these statements are given in the appendix. Agencies may modify the displays to best present the information for their programs. SFFAC 2 refers to a statement of program performance measures. However, footnote 9 of SFFAC 2 says: “The Board does not consider the Statement of Program Performance Measures to be a basic financial statement” (Federal Accounting Standards Advisory Board (FASAB), 2002 pp.3). Fund accounting is also required for federal agencies to demonstrate compliance with requirements of legislation. The fact that a lot of agencies still face problems in producing these basic statements is shown by the following quote (Walker, 2002 pp.3): Spoor financieel management 86 Hoofdstuk 7: United States “Many agencies have been able to obtain unqualified audit opinions only by expending significant resources on extensive ad hoc procedures and making billions of dollars in adjustments to derive financial statements months after the end of a fiscal year.” In response to a parliamentary question, GAO produced a letter to identify the core financial systems used at each of the CFO Act agencies as of September 30, 2002, and the status of any agency plans to update core financial systems (General Accounting Office (GAO), 2003b). GAO states in different reports that the successful implementation of financial management systems is key for improved financial reporting (General Accounting Office (GAO), 2003a) (Thompson, 2003). While integrated cost accounting systems still are largely under development, some agencies have been using one form of cost accounting, activity-based costing, to glean more accurate information about discrete operations. Tying financial data to performance is a challenge for virtually every agency. 7.1.3.4. Time horizon The six basic statements identified above, and the related footnotes, should present balances and amounts for the current year and the prior year (Office of Management and Budget (OMB), 2001 pp.5). There is thus a two-year time horizon. 7.1.3.5. Consolidation Collectively the FASAB standards require the preparation and issuance of consolidated financial statements for the US Government and its constituent component units under the full accrual basis of accounting. The experience at the agency level built the foundation for the release for the first time of audited government-wide financial statements for the fiscal year 1996. The consolidated financial statements of the United States Government consist of (Cortes, 2001 pp.236): - a management’s discussion and analysis (MD&A), - a balance sheet, - a statement of net cost, - a statement of changes in net position, - notes to the financial statements, - supplementary information, which includes a Stewardship section. SFFAS 24 states for the first time that all SFFASs apply to all federal entities (including the consolidated government wide entity) unless a standard specifically provides otherwise. In addition, it clarifies that the statement of budgetary resources and the statement of financing, while relevant for agencies executing the budget, are not required for the government-wide Consolidated Financial Report (CFR). However, SFFAS 24 requires new statements for the CFR, but not for agencies or departments. The new statements provide information on net operating revenue (or cost), budget surplus (or deficit) and cash. The new statements are Bram Scheers 87 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen principal CFR financial statements and are to be presented on a comparative basis (Federal Accounting Standards Advisory Board (FASAB), 2003b). Testimonies of the Comptroller General on the government financial statements show there are still a lot of problems with the consolidated financial statements. Progress is being made in addressing impediments to an unqualified opinion, but many of the pervasive and generally long-standing material weaknesses they have reported on still have not been fully resolved (Walker, 2002) (Walker, 2003). 7.2. IMPLEMENTATION STRATEGY OF THE REFORMS The CFO Act was a legislative initiative from the two congressional committees with jurisdiction over managerial oversight. OMB, GAO and the Treasury played an important role in the drafting of the legislation. OMB provided most of the guidance on the form and content of the financial statements through the bulletins it issued. The accounting reforms were and still are top-down initiatives. Strong centralized leadership is seen as a key to solve the government’s long-standing financial management problems. The CFO Act provided for such leadership by giving OMB broad, new authority and responsibility for directing federal financial management. The Act created a new position (the Deputy Director for Management) and a new Office of Federal Financial Management, headed by the Controller (not to be confused with the US Comptroller General, who is head of the legislative audit office), to spearhead the implementation of the CFO Act. In the United States, there was also the belief that influential financial management leadership is as important at the agency level as it is at central level. For this reason, it was decided that an agency CFO had to be a key figure in an agency’s top management team. Follow-up reports of GAO further ensure the attention for the implementation of the reforms. FFMIA e.g. requires GAO to report annually on the implementation of the act. OMB’s agency management scorecard is also an instrument to follow up and rate the progress agencies made towards the fulfilment of an improved financial performance. This has been strengthened by the “proud to be” exercise. This new initiative, outlined in a memorandum (Johnson, 2003), has set a deadline of July 1, 2004, for agencies to meet new performance targets under the administration’s five-point management agenda, of which financial management is one of it. Also FASAB has authorized its staff to prepare FASAB technical bulletins to provide guidance on certain financial accounting and reporting problems. Thus, there was and still is a lot of institutional support foreseen as well as from the top as in the departments and agencies. The accounting reforms can be described as comprehensive as the CFO Act departments and agencies account for 99% of the budget. However, the accounting reform process has been a long series of trial-and-error experiments. It took almost 60 years (between 1930 to 1990) to satisfactorily resolve the issue of who should set federal accounting standards. Once this was settled, it took another 10 years to come up with a fairly complete set of standards. The implementation was incremental. The CFO Act was firs applied in 10 pilot agencies. Thus, public accounting can be seen as a continuous series of experiments. Spoor financieel management 88 Hoofdstuk 7: United States Finally, the US has chosen to anchor the accounting reforms in a lot of legislation and accounting standards. REFERENCE LIST Blöndal, J. R., Kraan, D.-J. & Ruffner, M. (2003). Budgeting in the United States. OECD Journal on budgeting, 3 (2): 7-53. Chan, J. L. (2002). Government budget and accounting reforms in the United States. OECD Journal on budgeting, 2 (supplement 1): 187-223. Cortes, J. L. (2001). Accounting for capital assets in the public sector: difference between accounting standards boards in the United States. In: Bac, A. International comparative issues in government accounting. The similarities and differences between central government accounting and local government accounting within or between countries., Dordrecht: Kluwer Academic Publishers, pp. 223-50. Everson, M. W. (2001). Future external reporting changes. Washington, D. C.: OMB, pp. 3. Federal Accounting Standards Advisory Board (FASAB) (2002). Potential projects - fall 2002. Washington, D. C.: FASAB, pp. 11. Federal Accounting Standards Advisory Board (FASAB) (2003a). concepts. Washington, D. C.: FASAB, pp. 45. Briefing materials - Federal Accounting Standards Advisory Board (FASAB) (2003b). Selected standards for the consolidated financial report of the United States government. Washington, D. C.: FASAB, pp. 28. General Accounting Office (GAO) (2003a). Financial management. Sustained efforts needed to achieve FFMIA accountability. Washington, D. C.: GAO, pp. 70. General Accounting Office (GAO) (2003b). Financial management systems: core financial systems at the 24 chief financial officers act agencies. Washington, D. C.: GAO, pp. 26. Johnson, C. (2003). Clay Johnson's "where we'd be proud to be" memo. Executive Magazine: 2. Government Office of Management and Budget (OMB) (2001). OMB bulletin no. 01-09. Form and content of agency financial statements. Washington, D. C.: OMB, pp. 119. Thompson, S. E. (2003). Financial management. Recurring financial systems problems hinder FFMIA compliance. Washington, D. C.: GAO, pp. 29. Bram Scheers 89 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Walker, D. M. (2002). US government financial statements. FY 2001 results highlight the continuing need to accelerate federal financial management reform. Washington, D. C.: GAO, pp. 43. Walker, D. M. (2003). Fiscal year 2002 U.S. government financial statements. Sustained leadership and oversight needed for effective implementation of financial management reform. Washington, D. C.: GAO, pp. 43. Spoor financieel management 90 Hoofdstuk 7: United States APPENDIX: EXTRACTS STATEMENTS Bram Scheers FROM ILLUSTRATIVE FINANCIAL 91 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Spoor financieel management 92 Hoofdstuk 7: United States Bram Scheers 93 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Spoor financieel management 94 Hoofdstuk 7: United States Bram Scheers 95 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Spoor financieel management 96 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context HOOFDSTUK 8 CONCLUSIE: SITUERING VLAANDEREN IN EEN INTERNATIONALE CONTEXT In dit laatste hoofdstuk worden de bevindingen van de landenstudies samengebracht. Het is de bedoeling om uit de eerder gedetailleerde landeninformatie meer algemene trends op te maken. Vlaanderen wordt dan telkens ten opzichte van deze internationale trends gepositioneerd. Dit gebeurt zowel voor de huidige Vlaamse situatie als voor de toekomstige zoals beschreven in het voorontwerp van comptabiliteitsdecreet. Het hoofdstuk vat aan met de belangrijkste algemene bevindingen in verband met de boekhoudfuncties. De historiek van de hervormingen, de actoren betrokken bij het tot stand komen van de nieuwe boekhoudinitiatieven, de aanleiding en de doelstellingen van die initiatieven worden hierbij besproken. Ten tweede komen de boekhoudprocedures aan bod. De bevindingen met betrekking tot de regelgeving en boekhoudnormen, de gehanteerde waarderingsregels, de belangrijkste actoren en de af te leveren rapporten worden hier weergegeven. Daarna is er aandacht voor de formattering van de boekhouding. Aan de hand van het soort boekhouding (kas of accrual), de inhoud van de jaarrapporten, de formattering van de financiële rekeningen, de tijdshorizon en de consolidatie worden de internationale trends gedefinieerd. Vervolgens komen de algemene bevindingen van de gevolgde implementatiestrategieën aan bod. Deze bieden inzicht in hoe de Vlaamse regering de implementatie van het voorontwerp van comptabiliteitsdecreet het best kan aanpakken. Het hoofdstuk wordt tenslotte afgesloten met een vergelijking tussen de boekhoudsystemen en de prestatiemeetsystemen. 8.1. BOEKHOUDFUNCTIES De volgende tabel geeft een overzicht van de belangrijkste boekhoudinitiatieven, de belangrijkste actoren, de aanleiding voor en de doelstellingen van de boekhoudhervormingen in de verschillende onderzochte landen. Deze worden hierna toegelicht. Historiek - Bram Scheers Australië Financial Management Improvement Program (1983-84) Accrual reporting for departments (1995-1998) Commonwealth Authorities and Companies Act (1997) Financial Management and Accountability Act (1997) Auditor-General Act (1997) Accrual-based outcomes - Canada Financial Information Strategy (1989-19952001) Improved Reporting to Parliament (1995) Modern Comptrollership (1997) Results for Canadians (2000) - Nederland Cash and commitment accounting system (19891992) Accrual accounting for agencies (1995) VBTB (1999-2002) Accrual accounting for central government departments (2000-2006) Governments Accounts Act (2002) 97 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Actoren - Aanleiding - Doelstellingen - Historiek - & outputs budgeting and reporting framework (1999-2000) Standard setting boards Department of Finance and Administration Joint Committee of Public Accounts and Audit Australian National Audit Office Voornamelijk ondersteuning management Betere verantwoording Beter financieel management Zweden Performance management (1988) Accrual accounting (late 1980s-1993) VESTA (1997-2000) - Public Sector Accounting Board Treasury Board Secreteriat Standing Committee on Public Accounts Office of the Auditor General Voornamelijk ondersteuning management Meer transparantie en betere verantwoording Beter management Verenigd Koninkrijk Financial Management Initiative (1982) Next Steps Programme (1988) White paper Resource Accounting and Budgeting (1995) Government Resources and Accounts Act (2000) - - Voornamelijk meer efficiëntie realiseren - Betere verantwoording Integratie financieel en management accounting Verenigde Staten Chief Financial Officers Act (1990) Government Management Reform Act (1994) Federal Financial Improvement Act (1996) Reports Consolidation Act (2000) Joint Financial Management Improvement Program Principals’ Initiative (2001) President’s Management Agenda (2001) Federal Accounting Standards Advisory Board Office of Management and Budget General Accounting Office Verouderd financieel management - Actoren - Aanleiding - Doelstellingen - Ministry of Finance Swedish National Financial Management Authority (ESV) Swedish National Audit Office - De delegatie en decentralisatie naar het management Het opvolgen van prestaties mogelijk maken Kost en management accounting - - - HM Treasury Financial Reporting Advisory Board Public Accounts Committee National Audit Office Ministry of Finance The Public Expenditure Committee The Netherlands Court of Audit - Voornamelijk ondersteuning management Efficiëntie en effectiviteit doen toenemen Verbetering van de verantwoording Beter financieel management Betere verantwoording Tabel 8.1 – Landenoverzicht boekhoudfuncties. 8.1.1. Historiek van de hervormingen Internationaal: een lange traditie in boekhoudhervormingen Het is opvallend dat de onderzochte landen reeds lange tijd actief zijn op het vlak van boekhoudhervormingen. De beslissing om met een bedrijfseconomische boekhouding te werken in de volledige centrale overheidssector werd in de meeste landen al in het begin van Spoor financieel management 98 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context de jaren 90 genomen. Zo werd in Australië al in 1992 aangekondigd dat al de departementen accrual rapporten zouden moeten opmaken. In Zweden werd het project accrual accounting zelfs al op het einde van de jaren 80 opgestart. Het Canadese Financial Information Strategy initiatief dateert eveneens van eind de jaren 80, maar het was in feite in 1995 dat de beslissing tot invoering van een acrrual boekhouding werd genomen. De Chief Financial Officers Act van 1990 zorgde voor de snelle introductie van accrual boekhouden in de Verenigde Staten. Als gevolg van het Next Steps Programme van 1988 begonnen alle agentschappen in het Verenigd Koninkrijk te werken met een accrual boekhoudsysteem. Het RAB initiatief van 1995 wou dit ook invoeren voor de departementen. Nederland vormt hier een uitzondering aangezien deze beslissing in 2000 werd genomen. Er kan min of meer worden gesteld dat de accrual boekhouding via initieel gebruik in de overheidsbedrijven verder werd verspreid naar de agentschappen toe om tenslotte ook in de departementen te worden geïmplementeerd. Deze invoering verliep niet altijd van een leien dak en vereiste veelal meerdere pogingen of initiatieven. Al de bestudeerde landen, met uitzondering van Nederland, hebben intussen ook een accrual boekhouding ingevoerd in de departementen. In Nederland werd de beslissing om een accrual boekhouding in te voeren voor de departementen pas in 2000 genomen terwijl deze al sinds 1995 wordt gebruikt in de opgerichte agentschappen. De voltooiing van de laatste stap, een accrual boekhouding in de departementen, is voorzien in 2006. Vlaanderen: beperkte traditie in boekhoudhervormingen Vlaanderen kent geen zo een uitgebreide historiek van boekhoudhervormingen. Dit is voornamelijk te wijten aan het feit dat Vlaanderen niet bevoegd was om haar eigen comptabiliteit te regelen. Door de bijzondere wet van 16 januari 1989 betreffende de financiering van de gemeenschappen en de gewesten werd voor de deelgebieden een eigen regeling in het vooruitzicht gesteld betreffende de begroting, de boekhouding en de controle. Pas op 16 mei 2003 werd de federale wet die het kader moest scheppen waarbinnen de decreetgever kan opereren goedgekeurd en bekrachtigd. Vlaanderen kan nu bijgevolg zelf haar comptabiliteit regelen. Er wordt daar momenteel volop aan gewerkt en dit heeft voorlopig geresulteerd in het voorontwerp van comptabiliteitsdecreet. In dit voorontwerp wordt er gesteld dat de Vlaamse overheid een economische boekhouding met een analytisch component zal voeren. Vlaanderen volgt hiermee de internationale trend naar een accrual boekhouding. Ondanks het feit dat Vlaanderen nu pas haar eigen comptabiliteit kan regelen, betekent dit niet dat er tot nu toe enkel gewerkt werd met een kas- en verplichtingenstelsel. Op basis van artikel 9 van de bijzondere wet van 8 augustus 1980 tot hervorming der instellingen kan de decreetgever immers in een specifieke regeling voorzien voor de instellingen van openbaar nut die door de gemeenschappen en gewesten worden opgericht. De Vlaamse Gemeenschap heeft dit inmiddels reeds gedaan voor een aantal instellingen. Het besluit van 21 mei 1997 verplichtte de Vlaamse Openbare Instellingen (VOIs) een geïntegreerde economische boekhouding en budgettaire rapportering te voeren. Ook binnen het Vlaams Ministerie werd er kennis opgebouwd in verband met een economische boekhouding. In 1999 werd er gestart met het opzetten van een nieuw financieel systeem waardoor het voeren van een economische boekhouding, naast een budgettaire boekhouding, mogelijk werd. Bram Scheers 99 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 8.1.2. Actoren Internationaal: sterke centrale aansturing Er zijn heel wat actoren betrokken bij de boekhoudhervormingen. Een eerste belangrijke actor die in al de onderzochte landen voorkomt, is het Ministerie van Financiën. Deze actor richt zich vooral op het uitstippelen en aansturen van de boekhoudhervormingen en omvat meestal een sterke managementafdeling (bvb. het Amerikaanse Office of Federal Financial Management van het Office of Management and Budget of de Swedish National Financial Management Authority, een agentschap van het Zweedse Ministerie van Financiën). Een tweede actor die in alle landen een rol speelt is het equivalent van het Belgische Rekenhof. Dit gebeurt via het deelnemen in werkgroepen omtrent de hervormingsinitiatieven, het opvolgen van de implementatie en het verspreiden van beste praktijken en richtlijnen. Ook de wetgevende macht (via de commissie van financiën) speelt in verschillende landen een invloedrijke rol bij het invoeren van boekhoudhervormingen. Het Australische Joint Committee of Public Accounts and Audit bijvoorbeeld uitte het verlangen om te evolueren naar een accrual-gebaseerde begroting, boekhouding en rapportering. Het Canadese Standing Committee on Public Accounts was een sterke ondersteunder van het FIS initiatief en in het Verenigd Koninkrijk was het Public Accounts Committee dan weer actief bij de uitwerking van het Resource Accounting and Budgeting initiatief. Naast deze centrale actoren zijn er ook organisaties die de boekhoudstandaarden voor de overheidssector bepalen of beïnvloeden. Er bestaat een grote diversiteit in deze organisaties. In sommige landen (Australië en Canada) worden de standaarden vastgelegd door eerder onafhankelijke instellingen terwijl ze in andere landen (Nederland, Zweden, de Verenigde Staten en het Verenigd Koninkrijk) worden vastgelegd door organen die zich binnen de overheid situeren. Vlaanderen: centrale aansturing In Vlaanderen speelt de afdeling Accounting van ABAFIM binnen het departement Algemene Zaken en Financiën van het MVG een belangrijke rol in de boekhoudhervormingen. De afdeling heeft zich ingezet voor de conceptuele voorbereiding en de interdepartementale coördinatie met betrekking tot de overschakeling van de kas- en verplichtingenboekhouding naar een economische boekhouding en ze stuurt de modernisering en actualisering aan van de Vlaamse comptabiliteit aan de hand van het voorontwerp van comptabiliteitsdecreet. Alhoewel het Rekenhof een federale instelling is, is het toch bevoegd voor de financiële gemeenschaps- en gewestmateries. Het Rekenhof speelt een rol in de ontwikkeling van het Vlaams comptabiliteitsdecreet via het actief deelnemen in werkgroepen. In tegenstelling tot bepaalde equivalenten in de onderzochte landen is het Rekenhof niet pro-actief in het verspreiden van beste praktijken of richtlijnen. De commissie voor algemeen beleid, financiën en begroting van het Vlaams Parlement speelt een minder sturende rol in Vlaanderen met betrekking tot de boekhoudhervormingen in vergelijking met een aantal bestudeerde landen. De ministers van Financiën en Begroting van de federale overheid hebben op 20 april 1993 de uitwerking van een algemeen boekhoudplan en de aanpassing van de bestaande wettelijke en reglementaire bepalingen toevertrouwd aan de Commissie voor de Normalisatie van de Openbare Comptabiliteit (CNOC). De CNOC heeft leden uit het academisch milieu, vertegenwoordigers van het Rekenhof, het Ministerie van Financiën van de federale overheid Spoor financieel management 100 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context en van de gemeenschappen en de gewesten. De CNOC is het boekhoudplan nog aan het afronden. Het Instituut van de Accountants en de Belastingconsulenten (IAB), de publiekrechtelijke beroepsorganisatie voor de accountants in België, werd tot nu toe zelden als officiële gesprekspartner betrokken bij de opmaak van boekhoudnormen voor de overheid. 8.1.3. Aanleiding voor de boekhoudhervormingen Zowel internationaal als in Vlaanderen: voornamelijk betere ondersteuning management Een immer terugkerende factor is dat de overheden nu in een meer competitieve omgeving functioneren waardoor het management nood heeft aan kostengegevens om hun beslissingen te kunnen onderbouwen. De managers hebben met een kas- en verplichtingenboekhouding onvoldoende instrumenten ter ondersteuning van het beheer. Een accrual boekhouding vergemakkelijkt de implementatie van resultaatgericht management. Ook in Vlaanderen is de aanleiding voor een economische boekhouding vooral management gerelateerd. De nadruk die in het kader van beter bestuurlijk beleid gelegd wordt op deugdelijk bestuur, in het bijzonder zuinigheid, effectiviteit en efficiëntie, vereist dat een beeld kan verkregen worden over de opbrengsten en de kosten van overheidsoptreden. 8.1.4. Doelstellingen van de boekhoudhervormingen Zowel internationaal als in Vlaanderen: deugdelijk bestuur gekoppeld aan voldoende verantwoording De internationale modernisering van de boekhouding heeft meerdere doestellingen. Een beter financieel management (meer efficiëntie en effectiviteit) mogelijk maken, de verantwoording van de overheid naar de burgers toe vergroten, de vergelijkbaarheid van resultaten tussen entiteiten doen toenemen, … Een belangrijk basisprincipe van de bestuurlijke vernieuwing in Vlaanderen is een deugdelijk bestuur. Het is de bedoeling dat de leidinggevenden de gelegenheid krijgen doelmatig en efficiënt om te gaan met de beschikbaar gestelde middelen en tegelijkertijd dat ze verplicht worden zich hierover te verantwoorden. De doelstellingen zijn dus gelijkaardig aan deze die we internationaal terugvinden. Deze sectie kan geconcludeerd worden met te stellen dat de beheersfunctie de belangrijkste boekhoudfunctie is geworden. De opvolging van de begroting blijft uiteraard gegarandeerd in het boekhoudproces. Daarnaast is ook de verantwoordingsfunctie belangrijk. In ruil voor de toegenomen managementvrijheid dient de verantwoording voor de resultaten immers ook toe te nemen. De financiële rekeningen verschaffen nu informatie over de departementen en agentschappen die vroeger niet beschikbaar was. 8.2. BOEKHOUDPROCEDURES De volgende tabel geeft per land een overzicht van de belangrijkste regelgeving en boekhoudnormen, de gehanteerde waarderingsregels, de belangrijkste actoren in het boekhoudproces en de vereiste rapporten. De belangrijkste bevindingen worden dan hierna besproken. Bram Scheers 101 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Regelgeving en boekhoudnormen Waarderingsregels Belangrijkste actoren in het boekhoudproces - Vereiste rapporten - Australië Financial Management and Accountability Act Commonwealth Authorities and Companies Act Auditor-General Act Finance Minister’s Orders Department of Finance Guidance Releases Australian Accounting Standards Statements of Accounting Concepts International Accounting Standards Fair value or replacement cost Chief Financial Officer Accountants Department of Finance and Administration Australian National Audit Office Maandelijkse financiële rapporten Jaarrapporten Regeringswijd rapport - Historical cost - - The departments Department of Finance - - Maandelijkse financiële rapporten Jaarlijkse financiële rekeningen Jaarlijkse performance rapporten Regeringswijd rapport Verenigd Koninkrijk Government Resources and Accounts Act UK Generally Accepted Accounting Practice Government Accounting Resource Accounting Manual European System of Accounts - - Regelgeving en boekhoud- normen - - - Zweden Budget Act Generally Accepted Accounting Principles Ordinances Supplementary regulations International Accounting Standards Manuals Canada Financial Administration Act Treasury Board Accounting Standards Generally Accepted Accounting Principles Financial Information Strategy Accounting Manual - - - Swedish National Financial Management Authority (ESV) The agencies Ministry of Finance Maandelijkse financiële rapportering Jaarrapporten Regeringswijd rapport - Periodieke (vaak maandelijkse) financiële overzichten Jaarrapporten Regeringswijd rapport Current / fair value principle The departments Accounting Officer Accountants HM Treasury - Chief Financial Officer Accountants Treasury Department Departementale jaarrapporten Regeringswijd rapport - Financiële rekeningen op kwartaalbasis Jaarrapporten Regeringswijd rapport - Historical cost Current value (voor de agentschappen) Minister of Finance The division Financial Economic Affairs within the departments Verenigde Staten Budget and Accounting Act Budget and Accounting Procedures Act Chief Financial Officers Act Government Management Reform Act Reports Consolidation Act FASAB Standards OMB Circulars, Bulletins and Memoranda GAO Accounting Standards Historical cost - - Waarderings- regels Belangrijkste actoren in het boekhoudproces Vereiste rapporten - Nederland Government Accounts Act - Tabel 8.2 – Landenoverzicht boekhoudprocedures. Spoor financieel management 102 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context 8.2.1. Regelgeving en boekhoudnormen Internationaal: kaderregelgeving en nationale en internationale normen In de meeste landen (Australië, Nederland, het Verenigd Koninkrijk en de Verenigde Staten) wordt de implementatie van de boekhoudhervormingen ondersteund door de invoering van een nieuwe kaderregelgeving die geregeld aan evaluatie onderworpen wordt en bijgestuurd wordt. Deze kaderwetgeving wordt dan verder in Orders, Regulations, Manuals, Circulars, instructies, … gedetailleerd. Er worden ook boekhoudnormen of -standaarden voor de overheid geformuleerd. In Australië bijvoorbeeld werden in 1997 drie nieuwe wetten geïntroduceerd om de boekhoudhervormingen wettelijk te verankeren. Meer gedetailleerde vereisten voor de rapportering zijn dan terug te vinden in de Finance Minister’s Orders, Department of Finance Guidance Releases, Statements of Accounting Concepts en Australian Accounting Standards. In Canada en Zweden werd er geen nieuwe kaderwetgeving geïntroduceerd, maar werden de boekhoudhervormingen mogelijk gemaakt via aanpassingen aan de bestaande wetgeving en gerelateerde documenten en standaarden. De Canadese Financial Administration Act van 1985 en de Zweedse Budget Act van 1988 vormen dus nog altijd de basis van de regelgeving met betrekking tot de overheidsboekhouding. Als gevolg van de verschillen in nationale regelgeving en boekhoudnormen is het moeilijk uniforme Generally Accepted Accounting Practices (GAAP) te vinden die in dezelfde mate in de verschillende landen kunnen worden toegepast. Naast de boekhoudstandaarden die door nationale organen worden bepaald, zijn er ook internationale standaarden die de rapportering van overheidsorganisaties proberen uniform te maken. Zo zijn er bijvoorbeeld International Public Sector Accounting Standards (IPSASs) gericht op de rapportering door overheidsinstellingen. Deze internationale standaarden komen niet altijd overeen met de nationale standaarden wat tot problemen kan leiden. De Euro-12, de twaalf landen die deelnemen aan de Euro, dienen daarenboven te voldoen aan de specifieke Europese ESRrapportering. Vlaanderen: kaderregelgeving en regionale, nationale en internationale normen De regelgeving die van toepassing is op de boekhouding in Vlaanderen had voornamelijk te maken met de regionalisering van België en de consequenties voor de financiering van de gewesten en de gemeenschappen zoals bijvoorbeeld de zogenaamde financieringswet van 16 januari 1989. Deze bijzondere wet stelde een eigen regeling betreffende de begroting, de boekhouding en de controle voor de deelgebieden in het vooruitzicht. Wel kunnen de deelgebieden geen volledige vrijheid verwerven voor wat betreft de manier waarop ze hun begroting, boekhouding en controles organiseren. Hun autonomie wordt begrensd door algemene bepalingen die door de federale wetgever worden opgelegd en die moeten nageleefd worden door alle gemeenschappen en gewesten. Deze federale algemene bepalingenwet is in 2003 goedgekeurd. Het is binnen dit federaal kader dat het Vlaams comptabiliteitsdecreet wordt uitgeschreven. Het is de bedoeling dit decreet zo snel mogelijk te laten stemmen in het Vlaams Parlement zodat het uiterlijk op 1 januari 2007 in werking kan treden. Net zoals in de door ons onderzochte landen bevat het comptabiliteitsdecreet eerder algemene zaken en zullen die meer gedetailleerd worden in de uitvoeringsbesluiten en circulaires. De CNOC werkt momenteel aan de uitwerking van een uniforme set van boekhoudnormen voor de overheden in het KB-Boekhoudplan. Naast deze regionale en federale bepalingen, moet Vlaanderen ook voldoen aan de Europese ESR-rapportering. Bram Scheers 103 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 8.2.2. Waarderingsregels Diversiteit Diverse waarderingsregels worden gebruikt. Canada, Zweden en de Verenigde Staten hebben gekozen voor het gebruik van het historische kost principe. In Australië en het Verenigd Koninkrijk werd er geopteerd voor het fair value principe. In Nederland passen de agentschappen het current value principe toe. Wanneer de full accrual basis voor het eerst wordt ingevoerd, kan het gebeuren dat omwille van pragmatische redenen of omwille van waarderingscriteria die niet gehaald worden bepaalde significante activa niet op de balans worden opgenomen. Deze kunnen dan geleidelijk aan worden ingevoerd. In het Vlaams voorontwerp van comptabiliteitsdecreet zijn geen gegevens omtrent de te hanteren waarderingsregels opgenomen. Die zullen worden vastgelegd in aan het decreet gerelateerde documenten. 8.2.3. Belangrijkste actoren in het boekhoudproces Internationaal: delegatie en toenemend belang accountant functie In de onderzochte landen zijn een mix van actoren betrokken in het boekhoudproces. Accrual accounting resulteert in alle landen in machtsverschuivingen zowel tussen als binnen departementen en agentschappen. De departementen en agentschappen krijgen meer verantwoordelijkheden dan vroeger het geval was. Er is een duidelijke delegatie van centrale verantwoordelijkheden merkbaar. Binnen de departementen en agentschappen is het belang van de accountant functie gegroeid omdat hun invloed in het beslissingsproces is toegenomen. De functie van financieel directeur is een van de belangrijkste geworden in de organisatie. Zo is de Chief Financial Officer functie in Australië en de Verenigde Staten nu een centrale functie met sleutelverantwoordelijkheden. De hervormingen leiden dus gedeeltelijk tot een concentratie van kennis en vaardigheden bij diegenen die getraind zijn in boekhouden. In Nederland is dit in de departementale Diensten Financieel-Economische Zaken. Het Ministerie van Financiën (in Australië, Canada, Nederland en Zweden) of de Treasury (in het Verenigd Koninkrijk en de Verenigde Staten) staat in voor het periodiek verzamelen van de financiële gegevens van de departementen en agentschappen om op basis daarvan periodieke rapporten te produceren. Ook worden de gegevens op het einde van het jaar geconsolideerd in een rapport voor de gehele centrale overheid. In Australië speelt ook het “Rekenhof” een rol in het boekhoudproces. Zo publiceert het Australische ANAO tijdens het boekjaar beste praktijk gidsen om de organisaties te helpen bij het opmaken van hun financiële rekeningen. Vlaanderen: delegatie en een te verwachten groeiend belang van de accountant functie In Vlaanderen verspreidt de afdeling Accounting binnen ABAFIM maandelijks kerncijfers en krediettoestanden naar het lijnmanagement, naar de departementale boekhoudcellen en naar de Vlaamse ministers. De afdeling maakt ook jaarlijks de algemene rekening van de Vlaamse Gemeenschap op en verzorgt de consolidatie en de ESR-rapportering naar de federale Spoor financieel management 104 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context overheid. Op dit ogenblik is het alleen mogelijk voor de diensten met afzonderlijk beheer een (deel)rekening op te stellen en niet voor elke departement afzonderlijk. Volgens het voorontwerp van comptabiliteitsdecreet worden er rekeningen voorzien per departement, IVA (voor de IVAs zonder rechtspersoonlijkheid betreft het in feite deelrekeningen die niet afzonderlijk worden goedgekeurd door het Parlement) en EVA. Periodieke tussentijdse rapporteringen op het einde van de kwartalen worden voorzien. De departementen en IVAs bezorgen hun rekeningen voor 1 maart volgend op het boekjaar waarop ze betrekking hebben aan de diensten van het Vlaams ministerie bevoegd voor het financieel en budgettair beleid, aangezien die belast zijn met de opmaak en consolidatie van de algemene rekeningen. De algemene rekening van een publiekrechtelijk vormgegeven EVA wordt opgesteld door de raad van bestuur van dat EVA voor 1 maart en bezorgd aan de Vlaamse Regering. Er valt te verwachten dat de invloed van de accountants naar aanleiding van het nieuwe comptabiliteitsdecreet ook in de Vlaamse overheid zal toenemen. De nadruk komt nu immers te liggen op de economische boekhouding en niet langer op de budgettaire boekhouding. Er moet dan ook worden voorzien in voldoende gekwalificeerd personeel zodat de verschillende entiteiten aan de vereisten van het comptabiliteitsdecreet kunnen voldoen. 8.2.4. Vereiste rapporten Internationaal: periodieke, jaarlijkse en geconsolideerde rapporteringen verplicht In alle landen worden er, naast het afleggen van de jaarrekeningen ter afsluiting van het boekjaar, periodieke rapporteringsmomenten voorzien in de wetgeving. Dit is de verantwoordelijkheid van de departementen en agentschappen. De periodiciteit van de rapportering kan wel verschillen van land tot land. Zo wordt er bijvoorbeeld maandelijks gerapporteerd in Australië, Canada en Zweden, terwijl er sinds het fiscaal jaar 2003 op kwartaalbasis wordt gerapporteerd in de Verenigde Staten. Ook worden er telkens geconsolideerde financiële rekeningen vereist naast de jaarrekeningen. Deze worden opgemaakt door het Ministerie van Financiën of de Treasury. Er worden dus jaarlijks financiële rekeningen vereist zowel per departement en agentschap als voor de overheid in haar geheel. De jaarrekeningen worden eerst aan het Rekenhof overhandigd vooraleer ze aan het Parlement worden voorgelegd. Er is ook een trend merkbaar naar het versnellen van de rapporteringscyclus zodat de inhoud van de rapporten het begrotingsproces meer kan beïnvloeden. Dit werd in Canada onder andere nagestreefd aan de hand van het Improved Reporting to Parliament initiatief. In de Verenigde Staten is het de doelstelling dat de departementale financiële rekeningen tegen 15 november, 45 dagen na het einde van het fiscaal jaar, worden gepubliceerd. De Nederlandse Commissie voor de Rijksuitgaven nam het initiatief om het indienen van de financiële rekeningen te vervroegen naar 15 mei in plaats van 1 september. Vlaanderen: periodieke, jaarlijkse en geconsolideerde rapporteringen verplicht Het voorontwerp van comptabiliteitsdecreet voorziet dat de Vlaamse Regering (voor de Vlaamse Gemeenschap en de IVA met rechtspersoonlijkheid) en de raad van bestuur (voor Bram Scheers 105 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen een publiekrechtelijk vormgegeven EVA) jaarlijks rapporteren aan het Vlaams Parlement en aan het Rekenhof over de stand van uitvoering van de begroting en over het resultaat en de vermogensbestanddelen. Er wordt ook voorzien in periodieke tussentijdse rapporteringen. Zo wordt er op trimesteriële basis een resultatenrekening voorzien. Wat betreft de begrotingsuitvoering wordt eveneens per kwartaal een rapportering gevraagd, behalve voor het eerste kwartaal. Een economische balans wordt slechts semestrieel gevraagd. De algemene rekeningen van de Vlaamse Gemeenschap, opgesteld op basis van de rekeningen van elk departement en van de IVA zonder rechtspersoonlijkheid, en de algemene rekeningen van de IVA met rechtspersoonlijkheid, opgesteld door de Vlaamse Regering, en van de publiekrechtelijk vormgegeven EVA, opgesteld door de raad van bestuur, worden uiterlijk op 31 maart volgend op het boekjaar door de Vlaamse Regering toegestuurd aan het Rekenhof. Het Rekenhof bezorgt dan de algemene rekeningen met zijn opmerkingen voor 31 mei aan het Vlaams Parlement. De geconsolideerde rekening wordt ter kennisgeving als bijlage bij het voorontwerp van decreet van algemene rekeningen aan het Vlaams Parlement gevoegd. 8.3. FORMATTERING VAN DE BOEKHOUDING De volgende tabel geeft voor de onderzochte landen een beeld van de variabelen kas of accrual boekhouding, inhoud van het jaarrapport, formattering van de financiële rekeningen, tijdshorizon en consolidatie. Deze worden dan opnieuw verder toegelicht in wat volgt. Kas of accrual boekhouding - Australië Accrual boekhouding - Canada Accrual boekhouding - Inhoud van het jaarrapport - Formattering van de financiële rekeningen - Tijdshorizon Consolidatie - Prestatie-informatie (outcomes and outputs) De financiële rekeningen - Statement by the chief executive and chief financial officer Statement of financial performance, of financial position and of cash flows Schedule of commitments, of contingencies and of administered items Notes Tweejaarlijkse tijdshorizon Voor de Commonwealth Accrual-gebaseerd - Spoor financieel management - - - Nederland Kas- en verplichtingenboekhouding voor de departementen Accrual boekhouding voor de agentschappen Een beleidsrapport (met niet-financiële informatie) Financiële informatie Prestatie-informatie (outcomes) De financiële tabellen De financiële rekeningen (in de toekomst) Statement of financial position, of operations, of cash requirements and of expenditure authorities used Notes and Schedules - Tweejaarlijkse tijdshorizon Regeringswijd Accrual-gebaseerd - Het rapporteringsjaar - Regeringswijd Volgens kas- en verplichtingenstelsel - - Opvolgingsrekeningen van de begroting: verplichtingen, uitgaven en ontvangsten De saldibalans met toelichting 106 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context Kas of accrual boekhouding Inhoud van het jaarrapport Formattering van de financiële rekeningen - Zweden Accrual boekhouding - Performance rapport De financiële rekeningen - Statement of financial position, of financial performance, of cash flows Appropriation report Notes and supplementary schedules - - - Tijdshorizon - Consolidatie - Tweejaarlijkse tijdshorizon Voor de centrale overheid Accrual-gebaseerd - Verenigd Koninkrijk Accrual boekhouding Verantwoording over de resultaten (outputs) De financiële rekeningen Schedule 1: Summary of resource outturn Schedule 2: operating cost statement and statement of recognised gains and losses Schedule 3: balance sheet Schedule 4: cash flow statement Schedule 5: resources by aims and objectives Notes Tweejaarlijkse tijdshorizon De hele publieke sector (inclusief het lokale bestuur) Kasbasis Accrual in de toekomst - Verenigde Staten Accrual boekhouding - Performance rapport De financiële rekeningen - A balance sheet Statement of net costs, of changes in net position, of budgetary resources, of financing and of custodial activities Notes - - Tweejaarlijkse tijdshorizon Regeringswijd Accrual-gebaseerd Tabel 8.3 – Landenoverzicht boekhoudformattering. 8.3.1. Kas of accrual boekhouding? Internationaal: accrual boekhouding geïmplementeerd In al de onderzochte landen wordt er reeds gewerkt met een accrual boekhouding. Wel is het zo dat in Nederland voorlopig enkel de agentschappen een economische boekhouding hebben geïmplementeerd. De invoering voor de departementen, die werken met een kas- en verplichtingenboekhouding, is voorzien tegen 2006. Australië en Zweden behoren tot de koplopers van landen die een accrual boekhouding voor zowel de agentschappen als de departementen hebben ingevoerd. Vlaanderen: accrual boekhouding tegen 2007 Ook binnen Vlaanderen wordt er al gedeeltelijk gewerkt met een accrual boekhouding. Zo werken de VOIs met een geïntegreerde economische boekhouding en budgettaire rapportering sinds het Besluit van 21 mei 1997. Ook binnen het Ministerie van de Vlaamse Gemeenschap kan er een economische boekhouding worden gevoerd sinds de implementatie van een nieuw financieel systeem. Deze praktijk wordt nu decretaal verankerd in het comptabiliteitsdecreet. Er wordt immers gesteld dat de Vlaamse overheid een economische boekhouding zal voeren met een analytisch component, op basis waarvan de begrotingsopvolging en –rapportering permanent kan worden verzekerd. Elke verrichting zal worden gehecht aan het boekjaar waarin ze zich voordoet en zal zonder uitstel, getrouw, volledig en naar tijdsorde worden geboekt. De implementatie dient ten laatst tegen 1 januari 2007 te zijn voltooid. Bram Scheers 107 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen 8.3.2. Inhoud van het jaarrapport Internationaal: prestatie-informatie en financiële informatie De jaarrapporten zijn het middel bij uitstek om de efficiëntie en effectiviteit van de programma’s mee te delen aan het Parlement en de burger. In alle landen bevatten de jaarrapporten van de departementen en agentschappen dan ook zowel niet-financiële als financiële gegevens. In het performance deel wordt de niet-financiële informatie weergegeven. Er wordt gerapporteerd over de vooruitgang in het bereiken van de vooropgestelde effecten en outputs en er worden indicatoren in vermeld. De financiële gegevens worden teruggevonden in de financiële rekeningen (Australië, Zweden, het Verenigd Koninkrijk en de Verenigde Staten) of tabellen (Canada en Nederland) die zijn opgenomen in het jaarrapport. Via het jaarrapport wordt er dus meer en meer getracht de financiële informatie met de prestatie-informatie te integreren en te consolideren. Vlaanderen: jaarrapport betreffende de uitvoering van de beheersovereenkomst en een beleidseffectenrapport Het Kaderdecreet Bestuurlijk Beleid stelt dat alle IVAs en publiekrechtelijk vormgegeven EVAs aan de Vlaamse regering dienen te rapporteren op basis van beleids- en beheersrelevante indicatoren en kengetallen. In maart dienen deze agentschappen te rapporteren over de uitvoering van de beheersovereenkomst gedurende het afgelopen kalenderjaar aan de hand van een jaarlijks rapport. De Vlaamse regering brengt dan jaarlijks verslag uit aan het Vlaams Parlement over de uitvoering van de beheersovereenkomsten. Daarnaast stelt het voorontwerp van comptabiliteitsdecreet dat de Vlaamse Regering op uiterlijk 31 mei een beleidseffectenrapport overhandigt aan het Vlaams Parlement waarin de realisaties van de beleidsopties gedurende het vorige begrotingsjaar geëvalueerd worden aan de hand van indicatoren en kengetallen. 8.3.3. Formattering van de financiële rekeningen Internationaal: balans, resultatenrekening en landspecifieke schema’s In het algemeen bevatten de financiële rekeningen een balans, een resultatenrekening en een toelichting bij de verschillende rekeningen. Daarnaast kunnen er nog rekeningen of schema’s vereist zijn die specifiek zijn voor het land in kwestie. Bij landen die werken met een accrualgebaseerde begroting (Australië en het Verenigd Koninkrijk) wordt er ook een overzicht van de kasstromen toegevoegd. De andere landen (Canada, Zweden en de Verenigde Staten) gaan daarenboven ook rekeningen die de uitvoering van de machtigende begroting opvolgen opmaken. De financiële rekeningen verschillen wat van de afgeleverde rekeningen door private ondernemingen om rekening te houden met de context en de aard van de centrale overheid. Aangezien de Nederlandse departementen nog werken met een kas- en verplichtingenboekhouding bevatten de financiële verantwoordingsstaten van de departementen voorlopig nog enkel de verplichtingen, uitgaven, ontvangsten en een saldibalans. Dit zal veranderen met de invoering van de accrual boekhouding. Spoor financieel management 108 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context Vlaanderen: een balans, resultatenrekening en uitvoering van de begroting worden verplicht voor alle entiteiten In Vlaanderen bereiden de VOIs momenteel jaarrekeningen voor in uitvoering van het Besluit van 21 mei 1997. Naast een balans, resultatenrekening en toelichting wordt ook de uitvoering van de begroting en bijhorende toelichting afgeleverd. Voor de invoering van het nieuw financieel systeem genereerde de boekhouding van het MVG enkel een overzicht van de binnenkomende en de uitgaande kasstromen. Artikel 31 van het voorontwerp comptabiliteitsdecreet stelt dat de verschillende entiteiten jaarlijks rapporteren over de stand van uitvoering van de begroting en over het resultaat en de vermogensbestanddelen, vastgesteld op basis van de economische boekhouding. Volgens artikel 37 moeten de algemene rekeningen bestaan uit: - een jaarrekening die een balans en resultatenrekening bevat, - de rapportering over de uitvoering van de jaarlijks machtigende begroting, - een toelichting bij het voorgaande en bij de realisatie van de ramingstaten bij de begroting, waarin een aansluiting tussen de budgettaire en bedrijfseconomische rapportering is opgenomen. 8.3.4. Tijdshorizon Internationaal: huidige en voorgaande boekjaar In alle landen, behalve Nederland, worden de resultaten van het gerapporteerde boekjaar geplaatst naast deze van het jaar voordien. De departementale rapportering over de uitvoering van de begroting in Nederland slaat enkel op het desbetreffende begrotingsjaar. In het voorontwerp van comptabiliteitsdecreet wordt er niks vermeld over de tijdshorizon van de financiële rekeningen. 8.3.5. Consolidatie Internationaal: regeringswijde accrual-gebaseerde consolidatie In al de onderzochte landen moeten er regeringswijde of geconsolideerde rekeningen worden opgemaakt. Dit gebeurt door het Ministerie van Financiën (in Australië, Canada, Nederland en Zweden) of door de Treasury (in het Verenigd Koninkrijk en de Verenigde Staten). Dergelijke rekeningen geven een beeld van de financiële positie van de overheid in haar geheel en worden opgemaakt op basis van de individuele rekeningen van de departementen en agentschappen. Als gevolg daarvan zijn de geconsolideerde rekeningen ook accrualgebaseerd (Australië, Canada, Zweden en de Verenigde Staten) of zullen ze dit in de toekomst worden (Nederland en het Verenigd Koninkrijk). De grootste moeilijkheid om dergelijke rekeningen op te maken is het elimineren van balansen en transacties tussen de verschillende entiteiten van de overheid. De inhoud van de geconsolideerde rekeningen kan verschillen van land tot land. Zo wordt er in Australië en Zweden naast de balans ook een resultatenrekening en een overzicht van de kasstromen gegeven. In het Verenigd Koninkrijk is het de bedoeling dat de geconsolideerde rekeningen ruim worden opgevat en de hele publiek overheid omvatten, inclusief het lokale bestuur. Bram Scheers 109 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen Vlaanderen: consolidatie op het niveau van de Vlaamse overheid Het voorontwerp van comptabiliteitsdecreet stelt dat de geconsolideerde rekening, ter kennisgeving aan het Vlaams Parlement, als bijlage bij het ontwerp van decreet van algemene rekeningen wordt gevoegd. De rekeningen zullen door de diensten van het Vlaams Ministerie die bevoegd zijn voor het financieel en budgettair beleid geaggregeerd en geconsolideerd worden om aan het Vlaams Parlement en het Rekenhof over te maken. Ook wordt op het einde van elk jaar voor de geconsolideerde Vlaamse overheid een rekening opgesteld overeenkomstig het Europees systeem van nationale en regionale rekeningen in de Gemeenschap. De Vlaamse regering bepaalt de wijze van consolidatie van de rekeningen. Deze uitvoeringsmaatregelen kunnen zowel betrekking hebben op de (begrotings)consolidaties die moeten gebeuren voor rapportering aan de federale of Europese overheid, als op bedrijfseconomische consolidaties per beleidsveld en per beleidsdomein. 8.4. IMPLEMENTATIESTRATEGIE VAN DE HERVORMINGEN Internationaal: een degelijke ondersteuning van de boekhoudhervormingen Er kan worden gesteld dat de boekhoudhervormingen top-down worden geïntroduceerd door de Minister van Financiën en zijn ministerie (in Zweden betreft het ESV, een agentschap van het Ministerie van Financiën). In Australië, Canada en het Verenigd Koninkrijk is er ook een sterke politieke ondersteuning via een parlementaire commissie die de problematiek bestudeert, stuurt en opvolgt. Er is een sterke betrokkenheid van de centrale actoren bij de implementatie van de boekhoudhervormingen. Steeds terugkerende bepalende actoren zijn de equivalenten van het Ministerie van Financiën en van het Rekenhof. Zij staan in voor de communicatie en opleiding omtrent de hervormingen en gaan de vooruitgang van de implementatie nauwgezet opvolgen. Daarvoor worden richtlijnen en beste praktijken gepubliceerd. Deze centrale ondersteuning wordt in de verschillende landen gecomplementeerd aan de hand van de betrokkenheid van agentschappen en lijndepartementen bij de ontwikkeling van deze documenten. Dit gebeurt meestal via permanente organen waarin de betrokken partijen op periodieke basis samenkomen om boekhoudkundige zaken te bespreken. Hierin worden ook bevindingen en praktijken uitgewisseld. Dit stimuleert de betrokkenheid van de uitvoerders ervan. Er werden in de landen voldoende financiële middelen ter beschikking gesteld om de implementatie tot een goed einde te brengen. In Canada bijvoorbeeld werd er $600 miljoen geïnvesteerd in nieuwe financiële systemen en training. Meestal was er op voorhand ook het besef dat de hervorming vele jaren in beslag zou nemen. In het Verenigd Koninkrijk was er bijvoorbeeld voorzien dat het resource accounting and budgeting project acht jaar zou duren. Er werd een duidelijke tijdstabel opgemaakt om de hervorming te implementeren. Deze werd redelijk strikt nageleefd omdat de Treasury en NAO de departementen nauw opvolgden. De recente boekhoudhervormingen zijn in alle landen, behalve Nederland, alomvattend aangezien ze van toepassing zijn op elk departement en agentschap. In Nederland is de accrual boekhouding momenteel enkel van toepassing op de agentschappen. De hervormingen worden wel incrementeel ingevoerd. Ook is het zo dat eerst de agentschappen en departementen accrual-gebaseerde rekeningen moeten afleggen vooraleer de stap naar accrual-gebaseerde regeringswijde rekeningen wordt gezet. Spoor financieel management 110 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context De boekhoudhervormingen zijn via nieuwe kaderwetgeving (Australië, Nederland, het Verenigd Koninkrijk en de Verenigde Staten) of via aanpassingen van de bestaande wetgeving (Canada en Zweden) wettelijk verankerd. Bovendien worden ze gelegitimeerd aan de hand van de boekhoudnormen en –standaarden. Vlaanderen: aandachtspunten bij de implementatie Het is voor de implementatie van het nieuwe comptabiliteitsdecreet belangrijk dat er voldoende steun is van bovenaf. Ook het politieke niveau dient dus actief bij de hervorming te worden betrokken. Deze betrokkenheid kan worden gestimuleerd via het voeren van een actieve promotiepolitiek in verband met de hervorming. Aan de hand van documenten kan er worden gewezen op het potentieel van de accrual-gebaseerde informatie. De promotiepolitiek dient te vermijden dat de politici de accrual-gebaseerde rekeningen niet begrijpen en bijgevolg enkel teruggrijpen naar de uitvoeringsrekeningen van de begroting. Uit de buitenlandse ervaringen blijkt dat een invloedrijk financieel leiderschap in de departementen en agentschappen even belangrijk is als dit op het centrale niveau. Het belang van een soortgelijke Chief Financial Officer functie zal dan ook sterk dienen toe te nemen. Indien dit niet gebeurt, is er een groot risico dat het potentieel van de bedrijfseconomische informatie onvoldoende wordt benut. De diensten van het Vlaams Ministerie die bevoegd zijn voor het financieel en budgettair beleid en het Rekenhof hebben een belangrijke rol te spelen in de implementatie van het nieuwe comptabiliteitsdecreet. Een goede samenwerking en afstemming van de activiteiten is dan ook aan te raden. Daarbij kan een duidelijke tijdstabel, met specifieke tussentijdse resultaten die moeten worden behaald, worden opgemaakt. Opdat die tijdstabel goed wordt nageleefd, is een goed opvolgingssysteem noodzakelijk. Dit bleek nuttig in het buitenland om de implementatie van de boekhoudhervormingen, die soms over een lange tijdspanne werden ingevoerd en waarvoor soms verschillende pogingen noodzakelijk waren, te vergemakkelijken. Het is wel zo dat Vlaanderen niet van nul dient te vertrekken aangezien zowel de VOIs als het MVG al ervaring hebben met een accrual boekhouding. Bij de start van de implementatie is het wel noodzakelijk dat alle onduidelijkheden zijn opgeklaard waardoor de invoering vlekkeloos en volgens plan kan verlopen. Om een meer efficiënte en effectieve implementatie te verzekeren is een breed draagvlak voor de hervorming noodzakelijk. Daarvoor is het aan te raden dat onder andere de VOIs en lijndepartementen bij de hervorming worden betrokken. Dit is ook zo gebeurd wat betreft de tot standkoming van het comptabiliteitsdecreet. Dit is ook aan te raden in de toekomst wanneer de uitvoeringsbesluiten worden geschreven. Er kan daarbij ook worden nagedacht over het creëren van een overlegorgaan zoals we dat internationaal vaak terugvinden. Daarin kunnen de verschillende partijen op regelmatige basis samenkomen om de boekhoudkundige aspecten te bespreken. De boekhoudkundige normen en standaarden blijven immers evolueren en deze evolutie kan dan besproken worden in dergelijk orgaan. Aangezien de baten van de invoering van een nieuw financieel instrumentarium in het algemeen maar op middellange tot lange termijn zichtbaar worden, maar de kosten op korte termijn worden opgelopen, is het uiteraard belangrijk dat er ook voldoende financiële middelen worden gereserveerd voor deze implementatie. Onderfinanciering moet ten zeerste worden vermeden omdat dit kan leiden tot suboptimale uitkomsten die op lange termijn Bram Scheers 111 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen schadelijk zijn voor de Vlaamse overheid. Opleiding en training dienen voldoende aandacht te krijgen zodat de competenties van het personeel worden afgestemd op de ondersteuning van de invoering van het nieuwe financiële instrumentarium. Ook de aanwerving van nieuwe personeelsleden om het kennisdeficit op te vangen, kan hierbij een uitweg bieden. Tenslotte wordt verwezen naar een van de succesfactoren in Australië. Daar worden de hervormingen periodiek geëvalueerd en indien nodig aangepast. Dit is eveneens aan te raden voor Vlaanderen. 8.5. VERBAND BOEKHOUDSYSTEMEN EN PRESTATIEMEETSYSTEMEN Zoals vermeld in de inleiding wordt naast de boekhouding in dit rapport ook de prestatiemeting behandeld in een ander onderzoeksrapport. De opsplitsing in twee rapporten heeft als voordeel dat beide systemen gedetailleerder kunnen worden behandeld en de vergelijkbaarheid per systeem over de onderzochte landen toeneemt. Het nadeel van de opsplitsing is wel dat het zicht op de samenhang tussen boekhouding en monitoring (nummer III in figuur 1.1) voor een groot deel verloren gaat. Om dit op te vangen worden, ter afsluiting van het rapport, het verband, de gelijkenissen en de verschillen die we uit de twee rapporten kunnen opmaken hier kort besproken. Dit gebeurt aan de hand van de parameters functies, procedures en formattering. Eerst worden de gemeenschappelijke punten en de verschilpunten weergegeven in een tabel. Daarna worden die verder toegelicht. - Gemeenschappelijke punten Een lange hervormingstraditie Beide systemen kennen meerdere gebruikswijzen en vervullen dus meerdere functies Centrale aansturing van de hervormingen Periodieke en jaarlijkse rapportering van de data De rapportering van de financiële en niet- financiële gegevens in gezamenlijke jaarlijkse rapporten - Verschilpunten De interne productie van boekhoudgegevens versus de soms externe dataverzameling bij prestatiemeting De focus en de graad van ontwikkeling en standaardisering van de wetgeving en normering De gestandaardiseerde boekhoudstandaarden versus de nog niet gestandaardiseerde standaarden voor prestatiemeting De prestatiegegevens worden niet geconsolideerd Verschillende filosofie en woordenschat van de kwaliteitscontrole De niet-financiële informatie wordt meestal niet ge-audit De focus van de systemen Tabel 8.4 – Vergelijking boekhoudsystemen met prestatiemeetsystemen. 8.5.1. Functies Initiatieven De door ons onderzochte landen kennen duidelijk een lange traditie in zowel boekhoudhervormingen als prestatiemeting. De initiatieven rond prestatiemeting en de boekhoudinitiatieven worden meestal apart ontwikkeld in specifieke hervormingen, maar in sommige gevallen is de link tussen beide systemen heel duidelijk. Zo wordt een accrual boekhouding vaak als noodzakelijk gezien ter ondersteuning van het resultaatgericht financieel management. Voor de uitbouw van een degelijk prestatiemeetsysteem is het belangrijk dat er een zicht is op de kosten en opbrengsten. De invoering van een bedrijfseconomische boekhouding is dus vereist. Gezien de nauwe link tussen de twee systemen is het niet verwonderlijk dat hervormingen met betrekking tot de boekhouding en monitoring binnen éénzelfde initiatief worden opgenomen. Spoor financieel management 112 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context Gebruik Zowel het boekhoudsysteem als de prestatiegegevens worden gebruikt voor verschillende doeleinden en vervullen dus meerdere functies. Ten eerste kunnen financiële en nietfinanciële gegevens een bron van informatie vormen in de ontwikkeling van beleid en de politieke besluitvorming. Beide zijn ten tweede een belangrijk instrument voor de uitvoerende macht om verantwoording af te leggen aan het parlement en de burgers. De boekhouding richt zich op de financiële verantwoording terwijl monitoring zich toelegt op de verantwoording over outputs en outcomes. Beide systemen ondersteunen tevens het intern management van de departementen en agentschappen. Zo is het belangrijk voor de beheersfunctie dat er kostengegevens aan outputs en activiteiten kunnen worden gelinkt. Financiële en nietfinanciële rapportering is tenslotte ook een belangrijk instrument in de aansturing en opvolging van verzelfstandigde organisaties. De vraag stelt zich hier wel in welke mate de geproduceerde prestatiegegevens daadwerkelijk worden gebruikt door de betrokken actoren. Wordt er met andere woorden voldaan aan de verschillende functies? Een goed prestatiemeetsysteem kenmerkt zich door functionaliteit, legitimiteit en validiteit. De mate waarin prestatiegegevens daadwerkelijk gebruikt worden, hangt af van een aantal factoren: de afstemming van de vraag en het aanbod naar prestatiegegevens, de nodige expertise en know-how bij de gebruikers om de gegevens te begrijpen en te kunnen interpreteren, incentives om de prestatiegegevens te gebruiken, waarheidsgetrouwe rapportering en doorstroming van informatie, betrouwbaarheid en geldigheid van de informatie en de tijdigheid van de rapportering. Er wordt steeds meer belang gehecht aan de kwaliteit van prestatiegegevens. Ook met betrekking tot de boekhoudgegevens kan men zich de vraag stellen in welke mate deze een impact hebben op de parlementaire controle, het intern management, de besluitvorming en de aansturing van verzelfstandigde organisaties. Parlementsleden beschikken niet altijd over voldoende expertise en know-how om de bedrijfseconomische rekeningen te gebruiken in de parlementaire controle en grijpen daarom vaak terug naar de uitvoeringsrekeningen van de begroting. Om de financiële gegevens te kunnen gebruiken voor het intern management is een goed uitgebouwd financieel informatiesysteem en de aanwezigheid van financiële expertise bij het management noodzakelijk. 8.5.2. Procedures Actoren Zowel voor het uitstippelen van de boekhoudhervormingen als voor het beleid rond prestatiemeting is er een centrale aansturing. Zo speelt het Ministerie van Financiën een belangrijke rol voor beide systemen. De centrale aansturing van het beleid rond prestatiemeting lijkt minder sterk en meer versnipperd te zijn dan de coördinatie van het beleid rond boekhouding. Er lijken ook meer bottom-up initiatieven te ontstaan vanuit de departementen en agentschappen. De verantwoordelijkheid voor beide hervormingen is wel gesitueerd in een speciale afdeling binnen het Ministerie van Financiën. Zo is de verantwoordelijkheid voor prestatiemeting meestal gesitueerd in een speciale managementafdeling. Daarnaast zijn er nog andere actoren betrokken bij het beleid rond prestatiemeting zoals de “cabinet offices” en de nationale statistiekinstellingen. Het Ministerie van Financiën is in een aantal landen zowel verantwoordelijk voor het periodiek verzamelen Bram Scheers 113 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen en rapporteren van regeringswijde financiële gegevens als voor het verzamelen en rapporteren van regeringswijde prestatiegegevens. Naast het Ministerie van Financiën spelen ook de rekenkamers een actieve rol bij de boekhoudhervormingen en de prestatiemeting. Dit gebeurt onder andere aan de hand van publicaties van handleidingen, beste praktijken en adviezen. Ook de beroepsgroepen zijn actief betrokken bij de hervormingen in de boekhoud- en prestatiemeetsystemen. Met betrekking tot het boekhoudsysteem zijn het uiteraard de accountants die een leidende rol spelen. Bij prestatiemeetsystemen is de leidende beroepsgroep nog niet helemaal duidelijk en wordt er hieromtrent nog volop gestreden. De accountants willen deze markt inpalmen, maar ook sociale wetenschappers en beleidsexperten eisen hun rol op. De organisatiegraad van deze beroepsgroepen verschilt nogal sterk en zal misschien bepalend zijn voor de uitkomst. Wat betreft de uitvoering van de hervormingen spelen in beide gevallen de departementen en agentschappen een cruciale rol. Wel is het zo dat de organisaties met betrekking tot monitoringinitiatieven meer vrijheidsgraden hebben in vergelijking met de boekhoudhervormingen. De wetgeving, regelgeving en richtlijnen in verband met prestatiemeting zijn immers nog niet zo ontwikkeld en gestandaardiseerd zoals dit bij de boekhouding het geval is. Dit komt uitgebreider aan bod in de volgende sectie. Een ander verschilpunt is dat de boekhoudgegevens steeds intern door de departementen en agentschappen worden gegenereerd, terwijl er voor de prestatiemeting ook een beroep wordt gedaan op externe bronnen zoals nationale statistiekinstellingen. Wetgeving en normen Wat de wetgeving betreft, kan er gesteld worden dat er voor de boekhouding altijd een wettelijk kader bestaat, terwijl dat voor prestatiemeting niet altijd het geval is. Indien het principe van prestatiemeting wettelijk verankerd is, dan gaat het meestal slechts over de algemene vereisten van prestatiemeting. De meer specifiek richtlijnen worden opgenomen in regelgeving en handleidingen. Naast de wetgeving zijn er zowel voor de boekhouding als voor de prestatiemeting meer specifieke regels en normen voorzien. De focus van de wetgeving en normering is verschillend voor de boekhoudsystemen en de prestatiemeetsystemen. De wetgeving en normering van financiële informatie heeft vooral betrekking op het boekhoudsysteem (rekeningstelsel, waarderingsregels, aanrekeningsregels, …) en niet zozeer op de financiële indicatoren die berekend worden op basis van dit boekhoudsysteem. De normering bij prestatiemeetsystemen daarentegen, heeft vooral betrekking op de indicatoren en niet zozeer op de prestatieboekhouding. Een belangrijk verschil tussen de boekhouding en de prestatiemeting is dat er bij de boekhouding redelijk gestandaardiseerde normen zijn die algemeen worden aanvaard en erkend (Generally Accepted Accounting Principles), terwijl dit bij prestatiemeting nog niet het geval is. De GAAP zijn over de jaren heen ontwikkeld om de financiële rekeningen van de organisaties te standaardiseren. Het volstaat om zich aan deze standaarden te houden opdat de financiële rekeningen van verschillende organisaties kunnen worden vergeleken. Op basis van de financiële rekeningen worden immers de financiële analyses of “ratio-analyses” (het berekenen van indicatoren zoals rendabiliteit, solvabiliteit, liquiditeit, voorraadrotatie, …) uitgevoerd. Er bestaat wel variatie tussen boekhoudstandaarden van verschillende landen, maar de inhoud is dezelfde en er is bovendien een trend naar steeds grotere internationale harmonisatie aan de hand van International Accounting Standards. Zo een proces heeft nog niet plaats gevonden met betrekking tot de rapportering van prestatiegegevens. Er wordt Spoor financieel management 114 Hoofdstuk 8: Conclusie: situering Vlaanderen in een internationale context echter wel gewerkt aan principes en standaarden voor prestatiemeting door een verscheidenheid aan professionele en gerelateerde organisaties. Zo wordt er in Canada hard gewerkt aan de ontwikkeling van een algemeen aanvaarde set voor de rapportering van prestaties. Consolidatie Het belangrijke verschilpunt tussen de boekhouding en de prestatiemeting is het feit dat prestatiegegevens niet op een kwantitatieve manier kunnen worden geconsolideerd zoals dit bij financiële gegevens het geval is. De rapportering van prestatiegegevens bevindt zich dan ook meestal op organisatieniveau. Indien er een regeringswijde rapportering is van prestatiegegevens, dan gaat het over gegevens die op regeringswijd niveau verzameld zijn en dus niet om een consolidatie van prestatiegegevens op consolidatieniveau. De consolidatieproblematiek is een belangrijke uitdaging voor organisaties met zeer veel uitvoeringsorganisaties zoals bijvoorbeeld werkgelegenheidsagentschappen. Audit en kwaliteitscontrole Bij boekhoudsystemen is het de interne controle die moet waarborgen dat de financiële rapportering betrouwbaar is. Een van de meest gekende modellen voor interne controle is het COSO model. De filosofie en de woordenschat die in dergelijke modellen wordt gehanteerd is dikwijls zeer verschillend van de kwaliteitscontrole bij prestatiemeetsystemen. Zo sluit de terminologie van de kwaliteitscontrole bij prestatiemeetsystemen veel sterker aan bij een sociaal-wetenschappelijk referentiekader. Op de financiële data wordt er ook een audit uitgevoerd die de betrouwbaarheid van de gegevens garandeert. Een audit van de prestatiegegevens gebeurt echter slechts in een beperkt aantal landen (bvb Zweden en Canada) en meestal voor specifieke gevallen en op ad hoc basis. Er dient echter verzekerd te worden dat de gegevens, of het nu financiële of nietfinanciële zijn, kunnen worden vertrouwd en vergeleken. De audit van prestatiegegevens kent nog heel wat uitdagingen en discussiepunten. Zo wordt er gediscussieerd over de toepasbaarheid van de methodologie van de financiële audit. Eveneens stelt zich de vraag hoe ver men kan en moet gaan met het auditen van prestatiegegevens opdat het nog haalbaar blijft? 8.5.3. Formattering Rapportering De boekhoudsystemen van de departementen en agentschappen produceren periodiek en jaarlijks financiële gegevens. Daarnaast worden er ook jaarlijks regeringswijde financiële rekeningen opgemaakt. De rapportering van prestatiegegevens situeert zich eveneens op organisatieniveau en in bepaalde gevallen (Zweden en Canada17) op regeringswijd niveau. De boekhoudformatteringen zijn meer gestandaardiseerd en minder afhankelijk van de strategie van een organisatie in vergelijking met prestatiemeetsystemen waarbij de formattering sterker is afgestemd op het proces van strategische planning binnen een organisatie. In het proces van strategische planning worden de normen geformuleerd waarmee 17 “Annual Consolidated Report for the Central Government” en TBS “Annual Report on Government’s Performance” Bram Scheers 115 Steunpunt beleidsrelevant onderzoek – bestuurlijke organisatie Vlaanderen de prestatie-informatie wordt vergeleken om te komen tot een beeld van de implementatie en de resultaten van de strategie en om indien nodig bij te sturen. Wel is het zo dat het analytisch luik van de boekhouding of de kostprijsboekhouding eveneens minder gestandaardiseerd is en meer afhankelijk is van de strategie van de organisatie. De departementen en agentschappen publiceren hun prestatiegegevens in jaarlijkse rapporten of annual reports. Deze rapporten bevatten tevens financiële informatie. De financiële en niet-financiële informatie worden dus samen opgenomen in één rapport. Er wordt steeds meer getracht de informatie te integreren en te consolideren. Focus De boekhouding is in alle landen, op uitzondering van Nederland, een accrual boekhouding geworden en focust zich nu dus op de kosten en opbrengsten en niet langer enkel en alleen op de kasstromen. De focus van de prestatiemeting (effecten, prestaties, activiteiten) is minder duidelijk en niet altijd evenwichtig. Het blijkt makkelijker te zijn prestatiegegevens te verzamelen over activiteiten en outputs dan over outcomes. Met betrekking tot de samenhang kan de vraag gesteld worden op welk niveau de link tussen de meetsystemen en de boekhoudsystemen dient plaats te vinden? Is het wenselijk en haalbaar effecten en kosten te verbinden of moet men eerder kiezen voor een pragmatisch scenario waarbij outputs en activiteiten gelinkt worden aan kosten? Het feit dat niet alle prestaties en effecten van de overheid meetbaar zijn en dat er niet altijd een causaal verband is tussen activiteiten, prestaties en effecten vormt hierbij een grote uitdaging. Spoor financieel management 116 Het steunpunt beleidsrelevant onderzoek – Bestuurlijke organisatie Vlaanderen heeft als missie om via wetenschappelijk onderzoek de kwaliteit van het management, bestuur en beleid van de Vlaamse Openbare besturen te verbeteren. Hiertoe worden volgende onderzoeksdomeinen verder uitgebouwd: - Bestuurlijke relaties, - Beleid, - Human resource management, - Financieel overheidsmanagement, - E-government, - Veranderingsmanagement, - Indicatoren en monitoring, - Fiscaliteit. Het steunpunt 'bestuurlijke organisatie Vlaanderen' is een consortium van het Instituut voor de Overheid (K.U.Leuven), de Universiteit Antwerpen, de Universiteit Gent en de Hogeschool Gent. Het wordt gecoördineerd door prof. dr. Geert Bouckaert (Instituut voor de Overheid). K.U.LEUVEN Universiteitsplein 1 B-2610 Wilrijk Prof.dr Ria Janvier Tel: 0032 3 820 28 72 Fax: 0032 3 820 28 82 E-mail: [email protected] Website: www.uia.ac.be/psw E. Van Evenstraat 2A B-3000 Leuven Prof.dr Annie Hondeghem Algemeen coördinator: Prof.dr Geert Bouckaert Tel: 0032 16 32 32 70 Fax: 0032 16 32 32 67 E-mail: [email protected] Website: www.kuleuven.ac.be/io Voskenslaan 270 B-9000 Gent Prof. dr Filip De Rynck Tel: 0032 9 242 42 07 Fax: 0032 9 243 87 96 E-mail: [email protected] Website : habe.hogent.be Sint-Pietersnieuwstraat 25 B-9000 Gent Prof. dr Hans Waege Tel: 0032 9 264 31 11 Fax: 0032 9 264 69 85 E-mail: [email protected] Website: www.psw.rug.ac.be/popmeth Algemeen secretariaat Steunpunt beleidsrelevant onderzoek BESTUURLIJKE ORGANISATIE VLAANDEREN E. Van Evenstraat 2 C - B-3000 Leuven - BELGIE Tel: 0032 16 32 36 10 - Fax: 0032 16 32 36 11 E-mail: [email protected] www.steunpuntbov.be