progress report on the adoption of ipsas at undp, unfpa and unops briefing to the executive board
DESCRIPTION
Progress Report on the Adoption of IPSAS at UNDP, UNFPA and UNOPS Briefing to the Executive Board. June 1 2009. IPSAS Background. EB Decision 2009/2: UNDP/UNFPA/UNOPS to update EB on preparations, implementation and implications of IPSAS. - PowerPoint PPT PresentationTRANSCRIPT
Progress Report on the Adoption of IPSAS atUNDP, UNFPA and UNOPS
Briefing to the Executive Board
June 1 2009
• IPSAS is considered best practice in accounting for public sector and not-for-profit organizations
• IPSAS was mandated by General Assembly Resolution 60/283
• 53 governments have adopted IPSAS or are in the process of doing so
IPSAS Background
2
• EB Decision 2009/2: UNDP/UNFPA/UNOPS to update EB on preparations, implementation and implications of IPSAS.
The IPSAS Programme in UNDP
3
• IPSAS is being introduced according to PRINCE2, an internationally recognized project management methodology
• The IPSAS Programme is overseen by an IPSAS Board representing all key stakeholders, and is directed by a full-time Manager
• Three fundamental pillars:
Financial Policy and Transition
Change Management
IT System Changes
Where We Are Now in UNDP
4
Policy Change Management
Transition plans
IT
30% of policies
70% of policies
Business requirements
Training
Change management communications
Learning strategy
Communications strategy
Learning frameworkChange management
strategyWorkload analysis
Design of financial statement
Testing & systems integration
Reports
Data conversion tools
Customization
Configuration
Prototype for key business areas
Functional specs for key business areas
UNDP: IPSAS Funding and Resources
5
• January 2007: EB approved IPSAS Programme budget of $9 million for 2008–2009
• One-time cost of IPSAS adoption estimated at $19.8 million. Additional funding of $10.8 million required to address:
– Organizational impact analysis
– Training, communication and in-country support
– IT cost for developing reports
• Above excludes recurring costs to address additional workload and complexity created by IPSAS
• Global financial crisis is constraining resources and impacting budget and staffing
• Competing priorities force tough choices :
– UN Contractual Reform mandate (with July 2009 deadline)
– Change of Atlas hosting from IBM to UNICC
– Administration of Justice System reform
• Atlas personnel and resources have been drawn off from IPSAS
• UNDP and its staff cannot absorb IPSAS ontop of all this change
• Without the necessary people and funding,a 2010 IPSAS adoption is no longer feasible
UNDP’s Timeline for IPSAS Adoption
6
Next Steps for UNDP
7
• Consultation with UNFPA and UNOPS on implementation plan
• Continued collaboration with system-wide Task Force on Accounting Standards
• Continued close engagement with Internal Audit and Audit Advisory Committee
• Seek further in-depth input from UN Board of Auditors
• Complete remaining Programme tasks
• Communications with staff and member states
• Consultations on contribution agreements
• Re-examine approach to IPSAS adoption in the light of the rescheduling to 2012
8
UNFPA Briefing
The IPSAS Programme in UNFPA
9
Governance
•CEB, Finance and Budget Network, Accounting Policy Task Force
•Working groups, such as the New York Focus, provide comments and analysis
•IPSAS Project Board provides guidance, advice and support
•Trilateral Advisory Panel (TAP) and Executive Sponsors Group (ESG) provides linkages to UNDP and UNOPS
Where We Are Now in UNFPA
10
• ‘Delivery Principle for Goods and Services’ implemented effective 1 January 2008
• IPSAS Risk Mitigation Strategy
• Impact analysis on business operations
• Began using the Atlas Contracts Module functionality
• Identified revisions to UNFPA Financial Regulations and Rules
• Engaged with IPSAS Training Advisory Board
• Staff communications including IPSAS web site
• Continuing consultations with DOS, BOA and AAC
UNFPA: IPSAS Funding and Resources
11
• $800,000 for 2006-2008
• Estimated $ 6.2 million for 2009-2012
UNFPA’s Timeline for IPSAS Adoption
12
• Following rescheduling of UNDP’s IPSAS adoption to 2012, UNFPA has had to rethink its own adoption strategy
• UNFPA will aim to align itself with UNDP’s adoption schedule for certain IPSAS standards
• UNFPA plans to adopt some standards on its own in 2010 - 2011
Next Steps for UNFPA
13
From 2010 UNFPA will adopt IPSAS in a phased approach:
• Finalize revisions to Financial Regulations and Rules
• Revenue Recognition, Fixed Assets, Intangible Assets, Inventory and Impairment of Non-Cash Generating Assets will be adopted in 2010/11
• Financial Statement Presentation, Employee Benefits, Leases, Segment Reports and Comparison of Budget vs Actual will be adopted in 2012
• Ongoing consultations with donors on contribution agreements
14
UNOPS Briefing
The IPSAS Programme in UNOPS
15
• IPSAS implementation support is one of the five pillars of UNOPS’s Change Programme
• IPSAS project formally initiated under Prince2 project methodology in January 2009
• IPSAS project board established
• Quality assurance process flow established for all key activities
• IPSAS adoption based on phased approach
Where We Are Now in UNOPS
16
Policy
•New FRR to take effect in February 2009
IPSAS project management progress
•External benchmarking
•IPSAS initiation workshop
•IPSAS communication plan
•High-level approach to training
UNOPS: IPSAS Funding and Resources
17
UNOPS is currently reviewing its future funding requirements for adopting IPSAS, including recurring costs.
UNOPS Timeline for IPSAS Adoption
18
• Generally, UNOPS will follow an approach similar to that outlined by UNFPA
• In preparing its new implementation schedule, UNOPS must heed requirement of the 2006-07 BOA report to implement certain IPSAS standards by 2009 with or without ERP support
Next Steps for UNOPS
19
• UNOPS will adopt IPSAS in a phased manner
• Priority areas are receipt accrual, expense recognition and revenue recognition: implementation by 31 December 2009
• Exploring possibility of classifying some IPSAS standards as “quick wins”
• For remaining IPSAS standards, UNOPS is largely aligned with UNFPA’s approach
20
Thank You!