Debit Credit September 3, 2018

The Value of Public Financial Management

By LUZVI PANGAN CHATTO

The Chairperson of the International Public Sector Accounting Standards Board

(IPSASB), Mr. Ian Carruthers recently visited the Philippines to promote the
whole system approach to public financial management (PFM) as well as
encouraged the Commission on Audit (COA) to share its good practices in
developing accounting and reporting systems aligned with international standards.
Mr. Carruthers discussed developments in PFM and updates on the International
Public Sector Accounting Standards (IPSAS) at a forum in COA that was jointly
held by the COA and the Professional Regulatory Board of Accountancy (BOA).
IPSASB Deputy Director Ross Smith also gave updates on IPSAS while BOA
Chairperson Joel L. Tan-Torres shared developments in the Philippine public
accounting sector.
Around 150 COA officials and employees, representatives from the BOA, and
some members of the board of directors of the Government Association of
Certified Public Accountants, Philippine Association for Government Budget
Administration, Inc., and Philippine Association of Local Government
Accountants participated in the event.
Mr. Carruthers said the whole system approach framework to PFM is a holistic
model that complements existing assessment tools and provides checks and
balances in every system as well as synthesis of ideas and key elements to work
together to make PFM more effective. The whole system approach framework
provides leaders, managers and donors with a model of PFM outlining the
necessary measures and controls to promote wise spending, tackle corruption and
contribute to economic growth and long-term stability.
He further emphasized the need for integrity, respect for the rule of law,
accountability and transparency at all levels of governance which the whole system
approach supports. He noted a unique aspect of public service which is the goal of
achieving intended outcomes while acting in public interest all the time.
Mr. Carruthers also observed that the COA has many good practices in
promulgating accounting standards, rules and regulations that need to be shared.
He shared that the IPSASB has held roundtable discussions with various
stakeholders to get inputs to the Board’s 2019-2023 Strategy and Work Plan. He
said they have interacted with around 300 representative in the Manila leg of the
roundtable discussions held at the Asian Development Bank Headquarters last May
29 to 30, 2018
.
There was also a discussion on the IPSASB 2019-2023 Strategy and Work Plan,
including developments in public sector financial instruments projects and update
on IPSAS 28-30 (IFRS convergence). Under its proposed Five-Year Strategy and
Work Plan, the IPSASB aims to continue strengthening PFM globally through
increasing adoption of accrual-based IPSAS. This Strategic Objective will be
delivered through two main areas of activity, both of which have a public interest
focus: (1) developing IPSAS and other high-quality financial reporting guidance
for the public sector, and (2) raising awareness of IPSAS and the benefits of
accrual adoption.

Clearly, the Philippines through the COA is promoting the PFM and the use of
IPSAS towards enhancing the country’s public financial management system.

LUZVI PANGAN CHATTO is Director IV and heads the Accounting

Systems Development and Other Services Office under the Government
Accountancy Sector of the Commission on Audit.
This column accepts contributions from accountants, especially articles that are of interest to the
accountancy profession, in particular, and to the business community, in general. These can be
e-mailed to boa.secretariat.@gmail.com