What is IPSAS?
- Stands for International Public Sector Accounting Standards
- Accounting standards are rules and disclosure requirements for the preparation and presentation of financial statements
- Adopted by the Organization for Economic Co-operation and Development (OECD), European Commission and NATO
- Replaces the current UN System Accounting Standards (UNSAS)
Why must FAO adopt IPSAS?
- It is a UN mandate that all agencies become IPSAS Compliant
- Donors and Member Nations have made a demand for compliance
What is the current situation with FAO financial reporting from a Permanent Representative standpoint?
- Incomplete financial information hinders effective decision making
- No comprehensive picture of the actual assets and liabilities of the Organization
- Financial reporting does not meet evolving international accounting standards
What benefits will IPSAS bring for Permanent Representatives?
- Transparent and reliable financial reporting leading to increased confidence in the Organization's financial state
- Best practice international accounting standards adopted
- Foundation for providing complete, comparable and readily understood financial information leading to better decision making and use of resources
Main IPSAS Project impacts
- Major change for the whole Organization, not limited to the Finance Division or administration
- New processes and procedures required (receiving of goods and services, record donated goods)
- Existing processes and procedures require updating (asset management, payment authorization)
- Budgeting and Donor Reporting remains unchanged
IPSAS Project Deliverables
- Financial statements based on high-quality, independently developed accounting regulations
- New processes and systems to replace the Field Accounting System (FAS) as part of the Global Resource Management System (GRMS) Programme
- Recording and tracking of all property and equipment
- Formal recording of receipt of goods and services
- Streamlined payment authorization and asset management processes
- New set of accounting policies and rules
Support for adopting IPSAS and its role in the FAO Reform Process
- IPSAS is a key element of the GRMS deployment
- The IEE and the Root & Branch Review insist on IPSAS adoption as a key element of FAO Reform
- Increasingly, funding agreements include conditions that require adopted international accounting standards eg. GEF (Global Environment Facility)