The chairman of the International Public Sector Accounting Standards Board (IPSASB), Mr. Ian Carruthers, recently visited the Philippines to promote the whole system approach to public financial management (PFM) as well as encourage the Commission on Audit (COA) to share its good practices in developing accounting and reporting systems aligned with international standards.
Mr. Carruthers discussed developments in PFM and updates on the International Public Sector Accounting Standards at a forum in COA that was jointly held by the COA and the Professional Regulatory Board of Accountancy. IPSASB Deputy Director Ross Smith also gave updates on IPSAS while BOA Chairman Joel L. Tan-Torres shared developments in the Philippine public accounting sector.
Around 150 COA officials and employees, representatives from the BOA, and some members of the board of directors of the Government Association of Certified Public Accountants, Philippine Association for Government Budget Administration Inc., and Philippine Association of Local Government Accountants participated in the event.
Mr. Carruthers said the whole system-approach framework to PFM is a holistic model that complements existing assessment tools and provides checks and balances in every system, as well as synthesis of ideas and key elements to work together to make PFM more effective. The whole system-approach framework provides leaders, managers and donors with a model of PFM outlining the necessary measures and controls to promote wise spending, tackle corruption and contribute to economic growth and long-term stability.
He further emphasized the need for integrity, respect for the rule of law, accountability and transparency at all levels of governance that the whole system approach supports. He noted a unique aspect of public service, which is the goal of achieving intended outcomes while acting in public interest all the time.
Mr. Carruthers also observed that the COA has many good practices in promulgating accounting standards, rules and regulations that need to be shared. He shared that the IPSASB has held roundtable discussions with various stakeholders to get inputs to the Board’s 2019-2023 Strategy and Work Plan. He said they have interacted with around 300 representatives in the Manila leg of the roundtable discussions held at the Asian Development Bank headquarters on May 29 and 30, 2018.
There was also a discussion on the IPSASB 2019-2023 Strategy and Work Plan, including developments in public sector financial instruments projects and update on IPSAS 28-30 (IFRS convergence). Under its proposed Five-Year Strategy and Work Plan, the IPSASB aims to continue strengthening PFM globally through increasing adoption of accrual-based IPSAS. This Strategic Objective will be delivered through two main areas of activity, both of which have a public interest focus: (1) developing IPSAS and other high-quality financial reporting guidance for the public sector, and (2) raising awareness of IPSAS and the benefits of accrual adoption.
Clearly, the Philippines through the COA is promoting the PFM and the use of IPSAS toward enhancing the country’s public financial management system.
Luzvi Pangan Chatto is Director IV and heads the Accounting Systems Development and Other Services Office under the Government Accountancy Sector of the Commission on Audit.
The column’s coauthor, Eliza Cahayag Cabalfin, is chief administrative officer of the Public Information Office under the Office of the Chairman of the Commission on Audit.
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