2007 GoR Financial Statements Key Highlights

1. 2007 GoR Financial StatementsKeyHighlights JBSR VII, 24th April 2008 Thomas E.G Accountant General

2. Presentation outline: • Introduction • Components of Financial Statements • Progress on September Action Points • Challenges

3. Introduction • 2007 consolidated FS are based on the information extracted from the books of account of the following entities: • Central Govt entities : 133 • Local Governments : 31 • Development projects and programs: 249 (153 independent projects & 96 programs within CG agencies)

4. Introduction : • All the budget agencies prepared & submitted signed copies individual financial statements for consolidation • This is the second set of comprehensive financial statements that the Government has prepared. For the second time, the Government have access to a set of Consolidated Public Accounts showing the revenues, expenditures, financial assets and liabilities at a national level.

5. Introduction : MINECOFIN signed a second contract with an international consultancy firm PricewaterhouseCoopers (PwC) to support Government accountants to prepare financial statements for each budget agency and consolidated financial statements for the year ending 31 December 2007

6. Accounting Policies • Basis of preparation: • The consolidated financial statements were prepared in accordance with the International Public Sector Accounting Standards “Financial Reporting under the cash basis of accounting” issued by the International Public Sector Accounting Standards Board (IPSASB) with the modification of “modified cash basis” of accounting as defined in the Financial Regulations No. 02/2007

7. Components of Financial Statements • Part I • Consolidated statements of Revenue and Expenditure • Statement of Financial Assets and Liabilities • Statements of revenue & expenditure of Central Government entities • Statements of revenue & expenditure of Local Governments • Statements of revenue & expenditure of Development Projects • Statement of Investments of GoR • Statement of Contingent Liabilities • Public Debts • Part II 2007 Budget Execution Report

8. September Action Points

9. September Action Points…. • Action 2: Develop option paper to migrate to accrual accounting • The ToR was developed and we are in the procurement process to recruit a consultant for the assignment • Action 3: Ensure internet connectivity to all districts for connection to SmartGov and Budget Master • The reaming 3 districts were connect before the end of last year

10. September Action Points…. • Action 4: Include HR& Payroll issues in PFM action plan • The new PFM reforms shall have a component of payroll issues • Action 5:Admit Budget support donors in the PFM Steering Committee • The proposed PFM reforms governance structure shall include representative from donors

11. September Action Points…. • Action 6: Further consideration of a local government oriented PEFA • We have received from PEFA secretariat a guideline for application of the PEFA at sub-national Government level ( we may plan to conduct this assessment in the near future)

12. September Action Points…. • Action 7: Develop the career path for trained accountants (Rwanda expert scheme) • Action 11: Management of accountants in the public service needs to be given high priority (finalization of career path, set up an approach to retention) • We have finalized the RES strategy paper for accountants and internal auditors, its covers the career path & retention scheme, implementation of the RES starts 2nd half of 2008

13. September Action Points…. • Action 8: PEFA follow up (workshop, DPCG) • On 2nd April 08, we received a final PEFA report from the consultant after integrating comments from PEFA secretariat and IMF east AFRITAC, (as now we have a final report, we may plan for this)

14. September Action Points…. • Action 9: Strengthen the PFM SC oversight function and broaden participation in PFM reforms (Strengthen PFM reforms Secretariat and donor participation) • The new action plan comes with new governance structure meant to strengthen the PFM reforms SC and the secretariat

15. September Action Points…. • Action 10: Distribution of consolidates financial statements • There has been improvement in the preparation of 2007 financial statements, we are going to bind them from the printing unit and subsequently be distributed

16. September Action Points…. • Action 12: Revise the PFM action plan in light of the PEFA report and develop plan to institutionalize PEFA assessment • The PFM action plan is being revised to be completed end June 2008. • It was agreed that PEFA assessment is to be institutionalize, an ideal timing should be every 3 years.

17. Challenges and the Way forward: • The capacity of the accounting staff in most budget agencies is still low and we shall continue with capacity building programs aimed at skills enhancement and professionalizing . • For the past 2 years we were supported by PwC with over 20 qualifies accountants, we shall need support of about 3-4 people for a a few year as we still build our accounting systems and capacities

18. THANKS FOR YOUR ATTENTION