About the Committee
Public financial management is central to the growth of an economy as it is essential to deliver sustainable and high quality public services. In India, public financial management reforms have evolved over decades, however, the fundamental changes are yet to be achieved. Since the quality of financial statements impacts the quality of various finance related decisions, financial reporting is considered as vital ingredient of public financial management. Improved financial reporting is also important from the accountability perspective.
ICAI keeping its mission and vision in mind has constituted the Committee on Public Finance and Government Financial Management (CP&GFM) which strives to assist Central & State Governments and Local Bodies in successful implementation of the accounting reforms and public finance management. This is an initiative of ICAI to meet its social obligations by providing professional services of CAs beyond corporate sector and to the public at large, by being true to its role of being a partner in nation building. The Committee primarily focuses on capacity building of the finance officials of various tiers of Government in India by various means such as organizing workshops, developing relevant e-training modules, etc. apart from formulating Accounting Standards for Local Bodies (ASLBs).
Mission of CP&GFM
Mission of CP&GFM is to assist Central & State Governments and Local Bodies in successful implementation of the accounting reforms and public finance management.
Vision of CP&GFM
- To approach decision makers and stakeholders of Government Accounting and Public Financial Management to consider adopting and implementing standards in Government Accounting, especially for local bodies for accountability and transparency.
- The Committee also focuses on capacity building of the finance officials of various tiers of Government in India and other extended entities like PSUs, autonomous bodies etc. by various means such as workshops, relevant e-training modules, Webinars and Training Programmes.
- Creating awareness about the existing Government Accounting and Public Financial Management mechanism amongst CAs.
Terms of Reference of the Committee on Public & Government Financial Management (CP&GFM)
- To conceive of and suggest areas in which Accounting Standards for Local Bodies need to be developed and formulate them.
- To examine how far International Public Sector Accounting Standards (IPSASs) prepared by the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) can be integrated into national Accounting Standards for Local Bodies envisaged in paragraph (ii) above and to integrate the same to the extent possible with a view to facilitate global harmonisation.
- To review, at regular intervals, the Accounting Standards for Local Bodies from the point of view of acceptance or changed conditions, and, if necessary, revise the same.
- To provide, from time to time, interpretations and guidance on Accounting Standards for Local Bodies.
- To enable creation of a supportive environment for implementation of Accounting Standards for Local Bodies and respond to issues arising therefrom.
- To formulate comments on the drafts of accounting standards for governmental bodies issued by various authorities including International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC).
- To provide support to Government(s) and regulators, e.g., the proposed Governmental Level Technical Committee to be constituted under the aegis of Ministry of Urban Development and C&AG, in their endeavours towards various other aspects of financial reporting including preparation of asset registers, performance measurement, budgeting, costing, internal control and audit.
- To review, analyze, assist, recommend and suggest measures to the Central, State & Local Government in the areas of Policy assessment, planning and execution in public finance.
- To collaborate and coordinate with relevant authorities and various Ministries/Government Departments/Local Bodies for developing a mechanism of improving the Government Accounting System and enhancing the role of members of the Institute of Chartered Accountants of India thereat.
- To provide awareness of Public Finance, Government Accounting & Accounting Standards for Local Bodies to the society at large and specifically to the stakeholders including inter–alia to employees of the government, C&AG, members of the profession, media, NGOs and to citizens generally including appropriately addressing the training issues.
- Enhancing the accountability and transparency in public service delivery mechanism.
- To bring out newsletters, publications, and other useful inputs in areas of contemporary issues related to public finance and accounting standards for Local Bodies.
- To suggest checks and balances for monitoring periodical review/ audit of end use of funds.
- To increase the role of ICAI and its members in the various “Financial Inclusion” initiatives of the Government which would mainly emphasis on:
-
- Assisting government in bringing appropriate regulatory and educational policy framework in place.
- Collaborating intensively with different chambers and associations of industry.
- To carry out such other work relating to Public Finance, Accounting Standards for Local Bodies and other related aspects as may be entrusted to it by the Council.