2017年-世界发展银行全球_Serbia_Public_Sector_Accounting_Review___Report_on_the_Enhancement_of_Public_Sector_Financial_Reporting_119页_2mb

Summary of the Serbia Public Sector Accounting Review Report

Core Content

This report, prepared by the World Bank's Governance Global Practice under the PULSAR Program, provides an assessment of the current state of public sector accounting in Serbia and outlines a strategy for aligning it with International Public Sector Accounting Standards (IPSAS). The report is part of the Serbia Public Sector Accounting Reform Technical Assistance project, funded by the Swiss State Secretariat for Economic Affairs (SECO) through the SAFE Trust Fund.

Main Objectives

The primary goal of the report is to support the transition of public sector financial reporting in Serbia from a cash basis to an accrual basis, in line with IPSAS, and to improve the quality and transparency of financial information. The report also identifies the institutional, legal, and technical challenges in achieving this transition and proposes a roadmap for reform.

Key Findings

Institutional Framework

• The Ministry of Finance (MoF) is responsible for public financial management (PFM).
• Direct Budget Beneficiaries (DBBs), Indirect Budget Beneficiaries (IBBs), and Organizations for Mandatory Social Insurance have functional responsibilities for budgeting and accounting.
• Local government units perform core PFM functions in cooperation with the Treasury Administration.
• There are 11,040 public sector entities, with a significant portion at the sub-national level.
• The current institutional framework lacks clarity, coordination, and capacity, especially in the areas of financial reporting, auditing, and IT systems.

Staffing and Training

• The MoF has 978 staff, with the Budget Accounting, Financial Reporting, and ICT sectors needing strengthening.
• DBBs are adequately staffed, while IBBs and local government units require additional finance staff.
• There is no formal training needs analysis or comprehensive training plan for PFM reforms.
• Training should be extended to public sector management and the Parliamentary Finance Committee.

Legal and Regulatory Framework

• Public sector accounting is regulated by a complex and fragmented legal framework.
• The need for simplification and harmonization is emphasized, particularly in relation to IPSAS adoption.
• A unified legal framework is required to ensure consistency and clarity in financial reporting.

Accounting Standards

• The Financial Reporting and Methodology Unit of the Treasury is responsible for setting accounting standards.
• A formal commission for the implementation of IPSAS is planned to advise the MoF on policy and standards.
• The current Serbian Public Sector Generally Accepted Accounting Principles (PS GAAP) are not fully aligned with IPSAS, particularly in areas such as consolidation, financial instruments, and asset impairment.

Financial Reporting and Systems

• Financial reports are prepared quarterly and annually by the Treasury based on data from DBBs and IBBs.
• The reporting process is fragmented, with poor systems and manual reconciliations.
• A comprehensive review and redesign of financial reporting systems is necessary, especially to meet the requirements of IPSAS.

Ongoing PFM Reforms

• Serbia has ongoing PFM reforms, including the roll-out of the Financial Management Information System (FMIS) and the management of payment arrears.
• These reforms should be fully implemented to support the transition to IPSAS-based financial reporting.

Main Recommendations

1. Partial Adoption of IPSAS: A phased approach to the adoption of IPSAS is recommended, with selected standards applied at different times.
2. Create Demand for Reform: Senior management and politicians must show commitment, and key stakeholders should be involved in the reform process.
3. Strengthen Institutional Framework: Clarify responsibilities, improve staffing, and establish a commission for IPSAS implementation.
4. Enhance Legal and Regulatory Framework: Streamline and harmonize the legal framework to support IPSAS adoption.
5. Improve Financial Reporting Systems: Redesign the chart of accounts and IT systems to ensure compatibility with IPSAS.
6. Implement Key PFM Reforms: Prioritize the full implementation of ongoing PFM reforms to improve financial reporting quality.
7. Develop a Training Plan: Conduct a training needs analysis and provide capacity-building for public sector finance staff.

Key Areas of Divergence Between Serbian PS GAAP and IPSAS

• IPSAS 2 (Cash Flow Statements): Classification of transactions, disclosure of interest and dividends, and reconciliation of cash flow statements with the balance sheet are not addressed in Serbian PS GAAP.
• IPSAS 3 (Accounting Policies and Errors): No requirement for retrospective changes in accounting policies or correction of prior period errors.
• IPSAS 5 (Borrowing Costs): Borrowing costs are recognized as expenses on the payment date rather than the incurrence date.
• IPSAS 9 (Revenue Recognition): Revenue is recognized on a cash basis, not based on service completion or transfer of ownership.
• IPSAS 12 (Inventories): Inventories are not measured at the lower of cost and net realizable value.
• IPSAS 17 (Property, Plant, and Equipment): Depreciation is recognized directly as a decrease in equity, not in surplus or deficit.
• IPSAS 23 (Non-Exchange Revenue): Revenue is recognized on a cash basis rather than when a resource inflow meets the definition of an asset.
• IPSAS 24 (Budget Information): No requirement for comparison of original and final budget amounts or explanations of material differences.
• IPSAS 31 (Intangible Assets): No impairment testing or disclosure requirements.
• IPSAS 35 (Consolidated Financial Statements): No mention of consolidation in Serbian PS GAAP.

Next Steps and Roadmap

• Develop a PFM reform budget focused on accounting and reporting.
• Establish a formal commission for IPSAS implementation.
• Conduct a comprehensive review of the IT landscape and accounting systems.
• Implement selected IPSAS standards, starting with:
  • IPSAS 1 (Presentation of Financial Statements)
  • IPSAS 2 (Cash Flow Statements)
  • IPSAS 5 (Borrowing Costs)
  • IPSAS 17 (Property, Plant, and Equipment)
  • IPSAS 29 (Financial Instruments: Recognition and Measurement)
  • IPSAS 31 (Intangible Assets)

This report serves as a foundation for the development of a coherent and effective strategy to align Serbia's public sector accounting with international standards, thereby enhancing transparency, accountability, and fiscal performance.