This presentation was made by Delphine Moretti, OECD Secretariat, at the 19th OECD Senior Financial Management and Reporting Officials Symposium held at the OECD Conference Centre, Paris, on 4-5 March 2019

1. FINANCIAL REPORTING IN IRELAND
Delphine Moretti
Paris, 4 March 2019
OECD Secretariat
Budgeting and Public Expenditure Division
Public Governance Directorate

2. 2
Ireland’s budget framework was significantly
modernised during the last decade…

3. 3
… but financial reporting has evolved very little.
• Appropriation Accounts are a Budget
Outturn on cash basis, presented by
“Vote” (i.e. budget chapter).
• Finance Accounts are a statement of
cash flows for the main treasury
account (the Central Fund), with
detailed information on financial debt.
• Accrual information provided in the
notes to Appropriation Accounts for
each Vote.
• Publication of the two sets of accounts
9 months after the end of the year.

4. 4
Ireland’s financial reporting practices are not
aligned with those of other OECD countries.
Note: reading from left to
right, accrual basis, cash
transitioning to accruals and
cash.
Note: reading from left to
right, public sector; national or
federal government; central
and local government (general
government); central
government; and budgetary
central government.
Note: reading from left to
right, 1-5 months; 5-7 months;
and 7-12 months.
Sources: Accruals Survey (2016) and Budget Practices and Procedures Survey (2018).

5. • Limited usefulness for financial scrutiny:
– A large share of public spending is outside of “core” year-end reports;
– Accounts are published (too) late.
• Difficulties for oversight of management performance:
– Accounts do not align with departmental responsibilities;
– Financial and performance information are not integrated.
• Lack of clarity and user-friendliness:
– Presentation and coverage differ depending on accounts considered;
– Accounts are (too) lengthy.
5
Three main concerns expressed by stakeholders.

6. 6
Making the case for accrual accounting in Ireland.
Harmonising
accounting
practices
Managing
assets and
liabilities
Understanding
risks to public
finances
Improving the
preparation of
statistics

7. 7
The proposed new financial reporting framework.

8. Proposed roadmap for implementing accrual
accounting.
2019
Inception
and setup
• Blueprint
• Governance
arrangements
• Gaps
assessment
2019-…
Definition
of the new
framework
• Standards
setting
• Pilots
• Training
• …
2021-2022
First wave
• New format
for F/S
• Assets and
liabilities
already
reported
consistent with
IPSASs
2023
Project
assessment
• Take stock
• Discuss way
forward
2024-2025
Second
wave
• Other assets
and liabilities
• Consolidation

9. 9
Key recommendations for the implementation of
accrual accounting.
• Creation of a “Government Accounting Directorate”
• Coordination with IT project
1. Strong Governance
• “Adopt, Adapt or Develop”
• Advisory Body
2. High Quality Standards Setting
• Chart of Accounts
• Manuals (methodologies, internal control,…)
3. Developing an Accounting Framework

10. http://www.oecd.org/gov/budgeting/
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