MoF Organises Roundtable To Discuss Enhancements In Federal Accounting Standards And Financial Governance

The Ministry of Finance (MoF) recently held a roundtable to discuss updates to the Federal Government’s Accounting Standards Manual and Financial Policies and Procedures Manual. This initiative aims to align federal accounting practices with international standards, enhancing financial governance. The session included Mariam Mohammed Al Amiri, Assistant Under-Secretary for the Government Financial Management Sector, and Amna Hassan AlShamsi, Director of Financial Policies and Government Accounting Standards.

The updated manuals are designed to improve financial reporting accuracy and efficiency across federal entities. Mariam Mohammed Al Amiri emphasised that these changes signify a commitment to transparency and governance, aligning with global public sector accounting trends. "These updates represent a qualitative shift in enabling federal entities to develop their financial practices," Al Amiri stated.

The session provided an overview of the main updates to the unified Federal Government Financial Policies and Procedures Manual. These changes aim to enhance public financial management efficiency by integrating various policies into one manual. This consolidation standardises concepts and simplifies implementation across all federal entities.

A RACI matrix was introduced to clarify roles and responsibilities within different procedures, improving institutional governance. This matrix considers organisational differences while maintaining a unified framework for accountability. The manual's structure was redesigned to detail each procedural step, linking them to organisational structures for flexible application.

Significant amendments were made to the Federal Government’s Accounting Standards Manual. These include adopting new international standards IPSAS 45 through IPSAS 49 and incorporating annual amendments from the International Public Sector Accounting Standards Board (IPSASB). Each standard addresses core aspects of government financial work.

IPSAS 45 focuses on property, plant, and equipment accounting provisions, ensuring accurate asset recording. IPSAS 46 defines measurement bases for assets, liabilities, revenue, and expenses. IPSAS 47 provides a framework for recognising government revenues from various sources, ensuring transaction transparency.

Improving Reporting Accuracy

IPSAS 48 offers guidelines for transfer expenses between government entities, enhancing reporting accuracy. IPSAS 49 establishes a unified framework for retirement benefit plans, improving financial data accuracy related to human resources. These standards enable entities to produce accurate and transparent reports.

The Ministry's impact study reviewed how these standards affect operational aspects like heritage asset recording and non-exchange asset measurement. The study highlighted the need for internal policy development and database updates in government entities to ensure compliance with international standards.

Future Directions in Financial Governance

The Ministry is organising focused discussions with federal entities before finalising the Financial Policies and Procedures Manual. It remains committed to monitoring outputs from the IPSASB, particularly climate disclosures under development. These will be included in future manuals to support sustainable transformation in UAE financial governance.

The session also covered implementation considerations and next steps recommended by the Ministry. These steps aim to ensure effective application of updated manuals, enhancing financial performance while adhering to international standards.

This initiative reflects the Ministry's dedication to developing a sustainable financial system through unified accounting practices. By adopting global standards, it aims to position the UAE as a leader in modern public financial management.

With inputs from WAM