2007年-世界发展银行全球_Maldives_-_Public_Sector_Accounting_and_Auditing___A_Comparison_to_International_Standards_70页_4mb

Maldives Public Sector Accounting and Auditing: A Comparison to International Standards

Core Content

This report, prepared by the World Bank in June 2007, evaluates the current state of public sector accounting and auditing in the Maldives and compares it with international standards. It aims to support the implementation of more effective Public Financial Management (PFM) by improving the quality of accounting and audit processes, aligning with international standards, and enhancing transparency and accountability.

Main Objectives

• To provide a common understanding of where Maldivian practices stand in relation to international standards.
• To identify current variances in accounting and auditing practices.
• To outline a path for reducing these variances.
• To establish a framework for continuous improvement in financial management.

Key Findings

Institutional Framework for Public Sector Accounting

• Accounting Laws and Regulations: The Public Finance Act and Financial Regulations are prescriptive in nature but do not explicitly mention International Accounting Standards (IAS). There is a need to align these laws with IPSAS.
• Education and Training: The current system lacks a comprehensive local training institution. Training opportunities are limited, and public sector accountants are not well-versed in international standards.
• Code of Ethics: The existing code of ethics is not aligned with the IFAC Code of Ethics for Professional Accountants. A more robust national code is required.
• Accountant Arrangements: There is a need for a Chief Financial Officer (CFO) function in each ministry to ensure proper internal financial controls and accountability.

Accounting Standards as Practiced

• Setting Standards: The Auditor General is responsible for setting accounting standards, but formal administrative actions are needed to ensure alignment with international standards.
• Financial Reporting: Financial statements are currently based on the cash basis, and there is a need to transition to the accrual basis of accounting as outlined in the IPSAS. This transition is expected to be implemented by 2009 as part of the Public Accounting System (PAS) project.
• Disclosure and Transparency: The current financial reporting does not meet international standards in terms of disclosures, accounting policies, and explanatory notes. These elements are to be improved as part of the PAS implementation.

Institutional Framework for Public Sector Auditing

• Statutory Framework: The Audit Act (enacted in March 2007) provides a statutory framework that aligns with the needs of the INTOSAI Auditing Standards.
• Audit Standards: The current audit manual is based on international standards, but they have not been formally adopted. The new Audit Act mandates the adoption of international standards.
• Code of Ethics: A code of ethics equivalent to INTOSAI standards has not been adopted yet. It is to be developed as part of the ongoing IDF grant and adopted by the Auditor General by January 2008.
• Accountability and Independence: The legal framework for the Supreme Audit Institution (SAI) does not fully meet the independence and powers required by international standards. The new Audit Act is expected to address this.
• Audit Competence and Training: The SAI lacks the necessary audit methods and technologies to meet international standards. A needs analysis is being conducted, and training opportunities such as distance learning and joint audits with other SAIs are recommended.
• Quality Assurance: The SAI does not have a quality assurance program in place. This is to be introduced through the IDF grant by September 2008.

Auditing Standards as Practiced

• Audit Planning: Meets international standards.
• Audit Supervision: Meets international standards.
• Internal Controls Evaluation: Meets international standards.
• Compliance Assessment: Meets international standards.
• Financial Statements Analysis: Does not meet international standards. This will be addressed through certification audits starting in 2009.
• Audit Opinion: Meets international standards for state-owned enterprises (SOEs), but needs to be extended to all public sector entities.
• Fraud and Error Consideration: Meets international standards.
• Audit Recommendations: Does not meet international standards due to lack of public reporting. The new Audit Act allows for public reporting, and its implementation will be evaluated.

Action Plans

1. Adopt IPSAS: The Auditor General is to prescribe the adoption of IPSAS, with the Government of Maldives confirming this by March 2007.
2. Develop Education and Training: A joint proposal by the Ministry of Higher Education, PSTI, PSC, MoFT, and the Auditor General is to be prepared by June 2007 to establish institutional education and training facilities.
3. Establish a Code of Ethics: The MoFT is to develop a national code of ethics by December 2007, based on the IFAC Code of Ethics.
4. Implement the Public Accounting System (PAS): The PAS project is to be rolled out by January 2009, using IPSAS formats for financial statements, explanatory notes, and disclosures.
5. Improve Audit Impact: A PFM indicators survey is needed to monitor progress in adopting international standards. The Institutional Development Plan for the Office of the Auditor General will support this.
6. Enhance Audit Capabilities: The ongoing IDF grant will assist in developing audit methods and technologies, with additional software and hardware required by 2008.
7. Ensure Public Reporting: The new Audit Act allows for public reporting of audit findings, and its implementation and effectiveness will be evaluated.

Conclusion

The report highlights the need for the Maldives to align its public sector accounting and auditing practices with international standards, particularly IPSAS and INTOSAI standards. It outlines a clear path for reform, including the development of a national code of ethics, the transition to accrual-based financial reporting, and the enhancement of audit capabilities and training. These reforms are expected to improve transparency, accountability, and the overall effectiveness of public financial management in the country.