Today, the Government has approved the draft order “On the Adoption of the Modernisation Strategy for the Accounting and Financial Reporting System in the Public Sector for the period till 2025”.
What’s it about?
To improve the quality, completeness and correctness of financial reporting data serving as a basis for management decisions in the public finance sector, the Ministry of Finance has prepared the Modernisation Strategy for the Accounting and Financial Reporting System in the Public Sector for the period till 2025.
The Strategy includes, among others, the following points:
- build-up and implementation of an information and analytical system of accounting and financial reporting for entities in the public sector;
- systematization of data-capture processes;
- improved set-up of the organizational structure of accounting units;
- improvement of the training and re-training system for professionals in accounting and finance.
"The modernization strategy for the accounting and financial reporting system is a crucial element enabling us to receive high-quality, complete and correct data from 73,800 entities managing and receiving funds from the state budget at the national and local level. I am confident that we will implement this strategy in a comprehensive way. There is no need to list the benefits of electronic reporting again. Our plan is to create a single information environment in accounting by 2025. First of all, this is crucial for the improvement of the public finance management, strategic budget planning and the budget performance control system,” interim Minister of Finance Oksana Markarova said.
What’s the benefit?
The implementation of the Strategy shall make it possible to establish a single information environment in accounting by 2025 which will pose a reliable basis for the further improvement of management in:
- public finance;
- strategic budget planning in the middle- and long-term run;
- budget performance control system.
What has been done so far:
The Ministry of Finance has adopted 20 national accounting regulations (standards) for the public sector which are in line with international standards. They allow to capture transactions in the accounting system taking into account the economic feasibility and effectiveness of respective entities;
The Ministry of Finance has approved a plan of accounts to ensure a unified approach in capturing business transactions in the public sector;
New forms of financial reporting and instructions for their completion have been implemented. It allows to disclose information about the results of the operations of public sector entities as well as the impact of selected values on the financial result;
Also, standard regulations on the accounting units of public sector entities have been adopted to outline the tasks, powers and liability of accountants;
Public sector entities have switched to accrual-based accounting which makes it possible to reflect all liabilities of these entities;
Also, the information and analytical system “E-Kazna” has been implemented which allows to trace accounts in the real-time mode, to exercise preventive control over expenses and their purpose as well as to process financial reports in a fast way.