OECD Accruals Symposium March 2016, Paris Unis Valencia Williams-Baker Deputy Director, Accounts Division United Nations

the strategy, the results, the benefits

ensuring IPSAS sustainability

IPSAS Implementation at the United Nations

UN system IPSAS implementation

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First IPSAS FS issued for the UN

Achievable IPSAS Policies

Strong Project Mgm &Governance

Progressive Implementation of

IPSASs

Benefits Mgm & Sustainability

Training and Communication

Stakeholder Mgm

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The strategy

Achievable IPSAS Policies

Strong Project Mgm &Governance

Progressive Implementation of

IPSASs

Benefits Mgm & Sustainability

Training and Communication

Stakeholder Mgm

New items in the UN IPSAS FS

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Information newly included in the IPSAS FS for UN:

PP&E, inventories, intangibles, EB liabilities, provisions, finance leases, allowance of doubtful accounts, investments at FV

ST donated right-to-use property arrangements as revenue

LT donated right-to-use property arrangements as assets

UNDP administered Multi-Partner Trust Funds fully controlled by UN included

Joint ventures: ITC, UNSSC, JFA – only UN share now included

Agent accounting for Tax Equalization Fund – now a liability

Additional assessments recorded as revenue in relevant year

Working capital fund and working capital reserves changed from reserves to liabilities

Notes: Related party, segment reporting, budget information

2014 UN Vol. I: Assets

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Structure of $7,487m assets as at 31 Dec 2014

PPE is 90% land &

buildings of which $2.1bn

relates to UNHQ

43.3%

6.1%

5.9%

27.5%

8.0%

1.9%

1.8%

5.2%

74% relates to Trust/TC/

insurance funds

0.2%

6 0.1%

2014 UN Vol. I: Liabilities

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Structure of $5,798m liabilities as at 31 December:

2.0%

9.1%

83.9%

1.0%

1.7%

1.2%

1.1%

Of which 86% relates to ASHI with ~5.1% each for repatriation

and annual leave

$279m is payables to Member States

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1. Revised Financial Regulations and Rules

2. IPSAS Policy Framework and corporate guidance documents

3. Risk management framework

4. New Chart of Accounts aligned with Umoja (SAP)

5. Suite of CBT and ILT training products, newsletter, pamphlets

6. Transition plan: opening balances and Dry Run

7. Benefits realization plan

8. Sustainability plan

Major products of IPSAS project

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Issues and challenges

Achievable IPSAS Policies

Strong Project Mgm &Governance

Progressive Implementation of

IPSASs

Benefits Mgm & Sustainability

Training and Communication

Stakeholder Mgm

•Audit and policy issues:

• Accruals and cut-offs; budget consuming accruals

• Revenue/expenses non-exchange arrangements

• Donated right to use property arrangements

• Segments reporting

• Accounting for annual leave & other EB

• Reporting entity boundary & consolidation

•Other challenges

• Change management challenges in non-finance functions

• Significantly more work to prepare the financial statements

• Ensuring realization of IPSAS benefits

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New functions to support sustainability

Achievable IPSAS Policies

Strong Project Mgm &Governance

Progressive Implementation of

IPSASs

Benefits Mgm & Sustainability

Training and Communication

Stakeholder Mgm

IPSAS/Umoja policy Function

• Monitor IPSASB & manage IPSAS Regulatory Framework

• Manage changes to systems and processes

• On-going training and communication

Assurance function

• Monthly assurance reporting by field offices

• Ongoing data analytics to support data integrity

• Statement on Internal controls

Asset accounting function

• Strengthened DOA for assets

• Asset accounting role in each field office

• Strengthened property management role

• New Asset Accounting Unit

Financial analysis function

• Track IPSAS benefits using KPIs

• Present financial analysis to mgm

• Support Use of IPSAS information for improved decision making