Robert Molloy
Question:19 Mr. Molloy asked the Minister for Finance if he will consider publishing a White Paper on public accounting methods and the reform thereof; and if he will make a statement on the matter. [15230/95]
Written Answers. - Public Accountancy.
Helen Keogh
Question:39 Ms Keogh asked the Minister for Finance if he will consider publishing a White Paper on public accounting methods and the reform thereof. [15231/95]
I propose to take Questions Nos. 19 and 39 together. A joint working group, representative of my Department and the Office of the Comptroller and Auditor General, put forward recommendations last year proposing changes in the annual accounts of Government Departments. These accounts — the Appropriation Accounts — are presented to the Dáil annually and examined by the Committee of Public Accounts. The working group's report was referred to the committee, because of their interest in the matter and the committee, having considered it, accepted the recommendations. These are to be implemented on a phased basis over a three-year period, starting with the 1994 accounts. The 1994 accounts, which were published in conjunction with the annual report of the Comptroller and Auditor General, are now available in the Library. Paragraph 1 of the report sets out the main revisions which have been made, while a statement of the accounting policies and principles followed in the preparation and audit of the accounts is also included.
Since the joint working group reported, the Strategic Management Initiative has been launched and, in that context, further consideration is being given to financial management systems in Government Departments. In particular, at the request of the Government, the Co-ordinating Group of Secretaries set up to oversee the Strategic Management Initiative is preparing proposals on public service reform generally, including proposals for reform of our financial management systems. It is expected that these proposals will be submitted by the end of October to the Government for its consideration. In addition, a pilot project on accrual accounting is under way, with the assistance of a commercial accountancy firm, in the Department of Transport, Energy and Communications. It is expected that the results of this project will be available early next year.
Existing statutory requirements specify that Government accounting shall be on a cash basis. The changes already introduced and any further changes at present contemplated will enhance the cash information rather than replace it. Accordingly, amending legislation is not necessary at this stage. If, in the future, amending legislation is being proposed, the question of publishing a White Paper can then be given consideration. In the meantime, my Department will keep the House informed, through the Committee of Public Accounts, of any further significant changes that may be under consideration.