Skip to main content

Malta shifts to accrual accounting


Malta’s ministry of finance is working towards introducing accrual accounting to all government departments over the next two and a half years.


The Maltese government signed a deal last month awarding financial services firm Grant Thornton Malta the contract to implement the system, worth an estimated €11.6m.


Finance minister Edward Scicluna tweeted on the day:

 

Rob Whiteman, chief executive of CIPFA, said: “Importantly, the Maltese government’s ambition is to make full use of the information it generates.

"The transition from cash to accrual accounting is a key part of strengthening a country’s public financial management and accrual based information should be used to inform the budgetary decision making which will improve fiscal sustainability, good governance and transparency.”

As well as implementing the Corporate Financial Management Solution system over the next 30 months, the Maltese government has promised to provide intense training for existing and new employees.

Scicluna said: “Ministries and departments will need to have their employees trained in necessary skills so this investment is fully exploited.”

Government employees will be expected to do operational work and help implement the system, the ministry of finance stated.

The Maltese government explained transferring from its current cash flow accounting system to accrual accounting will mean departments will have a “more transparent account of income and their expenditure”. 

Paulanne Mamo, Malta’s general treasury director, said the move was an “important step” that would “lead to the country have a transparent financial reporting system”, help ensure “government expenditure is under control” and make the “decisions necessary to continue to register a surplus”.

The deal was signed by Anthony Cachia, Malta’s director general of the department of contracts, Joseph Pullicino, a partner at Grant Thornton Malta on 10 July.

Work on a tender for the contract began in 2014.


Author:

Emily Twinch

Deputy editor, Public Finance and Public Finance International


source: http://www.publicfinanceinternational.org

Labels:

Comments

Post a Comment

Popular posts from this blog

CENTRAL BANK OF NIGERIA (CBN) Deputy Gov Disowns Fake e-mail Address.

Disclaimer CBN Deputy Gov Disowns Fake e-mail Address CBN Deputy Gov Disowns Fake e-mail Address The attention of the Central Bank of Nigeria (CBN) has been drawn to the activities of fraudsters impersonating some principal officers of the Bank in an attempt to defraud unsuspecting members of the public. Of particular concern to the Bank is the recent message sent from an e-mail purportedly belonging to the Deputy Governor, Corporate Services, Mr. Edward Lametek Adamu, transacting a phony business deal. We wish to inform all members of the public, particularly members of the social media community that officials of the CBN do not communicate with emails outside the @cbn.gov.ng domain. No principal officer of the Bank will transact business or ask you to transact business with any other platform outside those ending with @cbn.gov.ng. The CBN also wishes to warn the public that it will not be liable for any financial transaction which may have transpired between people and sca...
Post a Comment
Explore more »

Outreach event on the principles of disclosure discussion paper in Hong Kong

On 5 September 2017, the Hong Kong Institute of CPAs and the IASB will host a joint outreach event in Hong Kong on the IASB dis­cus­sion paper DP/2017/1 'Dis­clo­sure Ini­tia­tive — Prin­ci­ples of Dis­clo­sure'. The event will cover main elements of the  dis­cus­sion paper , including: “what con­sti­tutes effective com­mu­ni­ca­tion in the financial reports;” “what con­sti­tutes fair pre­sen­ta­tion of per­for­mance measures such as EBITDA;” “when, where and how financial in­for­ma­tion should be disclosed.” For more in­for­ma­tion, see the  press release  on the IASB’s website.
Post a Comment
Explore more »

New—and Important—Role for Professional Accountants in Assessing Human Rights Risk

  When law firms are hiring specialists focusing on human rights as advisors to business, business at large must take note. Over the last few months, at a range of events, I have heard first hand from such new professional legal associates of the importance of horizon scanning and the how the landscape is changing in regard to corporate responsibility. Human rights and business is an emerging area that is set to accelerate and, as no any business can rest assured without further investigation that their full supply chain is “clean”, assessing and addressing potential risk in this area is clearly also a role for the professional accountant . In recent years, the operating environment for business has changed irreversibly. Companies will be increasingly called to account to show what they have done to prevent disasters like the 2013 Rana Plaza garment factory collapse in Bangladesh that cost over a thousand lives. It is not only the clothing industry that is affected by human rig...
Post a Comment
Explore more »