Transcript Implementing the Government Finance Statistics Manual: Migration Paths & Experiences Workshop on the Implementation and Links between the System of National Accounts, 2008 and.

Implementing the
Government Finance Statistics Manual:
Migration Paths & Experiences
Workshop on the Implementation and Links between the System of National Accounts, 2008
and the Government Finance Statistics Manual
November 20–22, 2013 in Istanbul, Turkey
Gary Jones
Government Finance Division
Statistics Department
DISCLAIMER: This presentation represents the views of the authors and does not necessarily represent IMF views or IMF policy.
The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management.
Contents of Lecture
Introduction
Factors to take into account for migration path
Alternative bases of accounting
Country-specific steps needed in development of migration
path
Possible migration paths
Migration experiences
May be different from country to country
May be different from institution to institution
Government Finance Division, IMF Statistics Department
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Introduction
(1/2)
Implementation of fully integrated Government Finance
Statistics (GFS) system will
Take time and resources
Need to progress at pace determined by differing needs
and circumstances of country involved
Governments of most countries will need to revise their
underlying accounting systems to reflect
Accrual accounting principles; and
Classifications of GFS system
Government Finance Division, IMF Statistics Department
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Alternative Bases of Accounting
(2/2)
Cash
basis
Bases between cash
and full accrual
Full
accrual
A wide spectrum exists
For illustrative purposes - consider four points on that
spectrum
Cash basis
Modified cash basis
Modified accrual basis
Full accrual basis
Government Finance Division, IMF Statistics Department
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Migration from GFSM 1986 to GFSM 2001/13
(2/2)
Likely that many countries will broadly follow similar
paths as they implement GFSM, e.g.,
1st step, to classify cash data in GFSM framework
2nd step, to supplement cash data with additional, noncash
information (e.g., grants in kind)
3rd step, to supplement cash data with significant accrual
information (e.g., interest)
4th step, to implement accrual accounting system
Government Finance Division, IMF Statistics Department
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Implementation of GFSM
Compile Full Balance Sheet:
Add data on nonfinancial assets
Estimate Other Economic Flows:
Add data on holding gains/losses and other volume changes
Estimate Non-cash Items:
Add data on grants in kind, accounts receivable/payable, accrued interest, etc.
I
M
P
R
O
V
E
M
E
N
T
S
Compile Financial Balance Sheet:
Add data on stocks of financial assets and liabilities
Improve Coverage:
Expand coverage to include all relevant institutional units and transactions
Adopt New Presentation:
Recast existing data to the standard GFSM 2001 framework, identify data gaps, and plan to fill gaps
Take Stock:
Review existing source data, improve classifications according to international guidelines, and improve existing recording and compilation methods
T I M E
Cash Account
Full set of integrated statements
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Development of a Migration Path
(1/7)
Six possible development stages
1.
Conviction stage
2.
Political stage
3.
Planning stage
4.
Application stage
5.
Legislation stage
6.
Implementation stage
1.
Accounting systems
2.
Staff resources
3.
User education
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(2/7)
1. Conviction stage
What is existing system?
•
GFSM 1986 format? Budget format?
•
Shortcomings?
What are needs / advantages for country to migrate to
GFSM 2001/13 system?
•
Improvements in government’s policy decisions?
•
Improvements in accountability?
•
Greater transparency?
•
Better economic analysis?
•
Comparability and consistency
What are international demands?
•
International organizations? Accounting bodies?
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(3/7)
2. Political stage
Adequate preparation
•
To achieve further success
•
Political will?
Possible country-specific factors
•
Balancing items may seem to deteriorate
•
Debt position
•
Misinterpretation
–
•
Emphasize that GFSM 2001/13 provides much improved measures of
long term government performance
Resistance to change
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(4/7)
3. Planning stage
Need a detailed action plan
•
Spanning several years
•
Maintain data collection and compilation
–
Historic links
–
Parallel runs
Cooperation between institutions imperative
•
Committee representing all relevant institutions and agencies
Task forces
•
Working groups
Project and time schedules
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(5/7)
4. Application stage
Coverage of units and expense accounts
•
Choose a recent year’s data; identify government institutional
units; rearrange expenditure items and identify accrual items
Revenue accounts
Assets and liabilities accounts
Other aspects
•
Presentation and legal aspects
•
Project results, training, etc.
•
Technical aspects
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(6/7)
5. Legislation stage
New legal framework that includes
•
Timeframe for development stages
•
Assessment of effects on government accounts
Could include reporting requirements and assignment of
responsibilities
Government Finance Division, IMF Statistics Department
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Development of a Migration Path
(7/7)
6. Implementation stage
Depend on migration path
A finite task with definite and specific objectives
Flexibility to adjust
Accommodate new developments as they occur
●
●
●
●
●
Change classifications in cash accounting system to the GFSM 2001/13 framework
Estimate noncash items, e.g., grants in kind, other payments in kind
Adjust time of recording of flows, e.g., interest
Add consumption of fixed capital to Statement of Government Operations
Obtain partial data on holding gains (revaluations) and other economic flows, e.g., foreign loans, debt write-off
Government Finance Division, IMF Statistics Department
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Summary of Progress of the Migration Toward GFSM 2001
Presentation in Staff Reports
By IMF Area Department
There has been a steady progress with the implementation of the Board decision, and by the end of June 2013, 136
staff reports included the GFSM presentation of fiscal data. This number includes countries with Fund supported
programs, and it represents about 70 percent of all staff reports.
Source: IMF Staff Reports
Government Finance Division, IMF Statistics Department
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Number of Countries Reporting Data for the
GFSY in GFSM 2001 Format
140
120
100
80
80%
127
103
55%
85
115
113
111
59%
68%
61%
60%
70%
60%
50%
45%
40%
60
30%
40
20%
20
10%
0
0%
2004
2008
2009
Number of reporters for the GFSY
2010
2011
2012
As percent of Fund's membership
Source: Government Finance Statistics Yearbook (GFSY)
Government Finance Division, IMF Statistics Department
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Number of Countries Reporting Data on
Assets and Liabilities
70
60
16
50
16
40
25
30
20
65
51
46
29
23
13
10
0
20
12
8
2004 GFSY
2008 GFSY
Full balance sheet
Financial balance sheet
2012 GFSY
Liabilities only
Source: Government Finance Statistics Yearbook (GFSY)
Government Finance Division, IMF Statistics Department
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GFS Reporting by Country
Country
Albania
Armenia
Azerbaijan
Belarus
Bosnia & Herzegovina
Croatia
Georgia
Kazakhstan
Kosovo
Kyrgyzstan
Macedonia
Moldova
Mongolia
Montenegro
Serbia
Tajikistan
Turkey
Turkmenistan
Ukraine
Uzbekistan
Sector
GG
GG
GG
GG
GG
GG
GG
GG
Basis
C
C
C
C
A
C
C
C
F.B.S.
N
N
N
Y*
N
N
N
N
GG
GG
GG
GG
C
C
C
C
N
N
Y
Y
GG
C
Y
GG
A
Y
GG
GG*
C
C*
Y
Y*
GG – Consolidated General Government
A – Accrual or noncash basis of accounting
C – Cash basis of accounting
F.B.S. – Financial Balance Sheet (Yes / No)
Source: Government Finance Statistics Yearbook 2012
Government Finance Division, IMF Statistics Department
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