Vol. 557 No. 4
356 Mr. Eamon Ryan asked the Minister for Health and Children if his Department's annual accounts are done on a full accrual accounting system; and if not, if there is a timescale for the implementation of such an accounting method. [22549/02]
Accounting in Departments is operated on a cash-based receipts and payments system. The accounting system records the movement of cash in and out of the Department, that is, those receipts and payments received and paid during the period of account. The appropriation accounts are prepared on a cash basis, with the addition of some information on an accruals basis such as a statement of current assets and liabilities and a statement of capital assets.
Under the strategic management initiative, an enhanced financial management system, the management information framework, for Departments is being developed. The objective of the management information framework, MIF, programme is to improve management information systems, financial and non-financial, throughout Government and to formalise existing and developing administrative practices within a coherent management and accounting framework. The purpose of MIF is to improve public sector financial management and to provide a financial management and control framework within each Department. Any change to the format of the annual appropriation accounts is in the first instance a matter for the Minister for Finance.
Regarding accounting principles applying to the wider health services, health boards, the Eastern Regional Health Authority and the voluntary sector have, since the commencement of the 1970 Health Act, operated on the basis of full accrual accounting. The system is underpinned by the Department accounting standards which are aligned with the GAAP, general accepted accounting principles, with some exceptions for public sector matters.
