Hessian Ministry of Finance EPSAS

Transcription

1 EPSAS Study on the conversion of a double-entry accounting system to uniform European Public Sector Accounting Standards Illustrated by the example of the state of Hesse MinR Harald Bott Call for proposals of the European Commission (21040/2014/003)

2 Accounting in Hesse State of Hesse in the center of Germany / Europe Hesse as a center of science, research and future industries Rhine Main Area with high industrial density, Financial Center Frankfurt, ECB, Frankfurt Airport International and ESOC (Darmstadt) GDP Hesse (2015): 263 billion Germany: 3,026 billion Population: 6.2 million (Germany: 82 million) Area: 21,115 km 2 Capital: Wiesbaden Budget Hesse (2017): 35.3 billion 2

3 Our Study Study on the conversion of a double-entry accounting system to uniform European Public Sector Accounting Standards Illustrated by the example of the state of Hesse Preface # 1: Initial situation # 2: Experiences from similar projects # 3: Acceptance Management as a success factor for the implementation project # 4: EPSAS Implementation Project Conclusion Annex Project plan 3

4 Initial situation: accounting in the state of Hesse Implementation double-entry accounting in about 800 offices State of Hesse: Consolidated Opening Balance (audited) 1st (audited) consolidated financial statements State of Hesse Unqualified auditors' opinion Cabinet decision to introduct double-entry accounting st Opening balances of accounting units st Consolidated Opening Balances on ministerial group level Current consolidated financial statements Bookkeeping / Accounting Consolidation Optimization 4

5 Group structure Use of Accounting 80 accounting units 11,300 SAP users Financial reporting Information Budgeting Financial statistics 5

6 Experiences from similar Hessian projects Success factors from earlier projects that implemented accounting modifications / conversions: Clear objectives and clear political mandate: Political support must not be limited to the start but has to be followed up with sustainable interest and engagement. High-priority political support by power promoters: Regarding the Hessian project of the NVS (reform of Hessian accounting and controlling), it was positive that the Hessian Prime Minister had pushed the project over and over again. Broad-based acceptance management at all levels of administration. Not only executives, but also employees who are to "live" the new system. Hesse: Inclusion of further parties involved in the budget process, in particular Parliament. 6

7 Acceptance Management as a success factor Successful change process requires proper and adequate dealing with affected persons Careful analysis of project environment and project stakeholders is important. Phases of EPSAS Acceptance Management Observation (Phase I) Concretization (Phase II) Implementation (Phase III) Phase I: Phase II: Period from the completion of the study up to the moment when development of EPSAS will have reached a high level of concretization EPSAS have reached a high level of concretization, start of implementation project is foreseeable (expected 12 to 6 months before project start) Phase III: Start of implementation project until its completion. 7

8 Assumptions Our project plan for EPSAS implementation is based on the following assumptions: For budgetary purposes, Hesse will hold on to the link between double-entry accounting and budget planning / controlling - even on the basis of new accounting requirements. The national accounting regulations for the public sector, in Germany the principles of government double-entry bookkeeping 1 (so-called Standards staatlicher Doppik ), are adapted to EPSAS. The (national / international) requirements for financial reporting are adjusted to EPSAS. The statistical data is collected on a corresponding double-entry basis. 1 within the meaning of 7a, 49a HGrG 8

9 Project start Project agreement signed functional delta analysis completed Functional concept approved Technical concept approved Start budget planning according to EPSAS Start budget execution and sub-annual statistical reporting according to EPSAS Start financial statements according EPSAS Start annual budget reporingt according to EPSAS Start annual statistical reporting according to EPSAS Consolidated financial statements according to EPSAS approved by Hessian Court of Auditors Project end Hessian Ministry of Finance EPSAS Implementation project 2025 (e.g.) Nov Dec xx Oct Project definition 2. Functional concept 3. Technical concept 4. Implementation 5. Introduction 6. Support 7. Completion M1 M 2 M2 M 3 M 4 M 5 M 6 M 7/8 M 9 M10 M11 M12 M13 Project phases Milestones Timeline Project plan 9

10 EPSAS EPSAS: our expectations Clear legal framework, objective, arbitrary and reliable depiction of government and administrative action, narrowed down options (in important areas) Accounting is suitable as a basis for budgetary management in public sector bodies that interlink accounting and budgetary control within their budget sovereignty. Financial reporting on a double-entry accounting basis without complex parallel operation 10

11 Thank you for your attention! Harald Bott Accounting, Payment transactions, Reporting services Hessian Ministry of Finance Friedrich-Ebert-Allee 8, Wiesbaden, Germany Tel.: +49 (611) / Fax: Harald.Bott@hmdf.hessen.de 11