The Ministry of Finance announced today the launch of the second phase of government entities to transition to accrual accounting, building on the success it achieved in the first phase of the programme, based on its efforts to raise the effectiveness of financial planning in the country in accordance with international best practices.
The transition to accrual accounting represents a critical step that increases the efficiency of the federal budget and improves public financial management in the country. The second phase of the programme included the Ministry of Justice, the Ministry of Human Resources and Emiratisation, the Federal Competitiveness and Statistics Authority, and the Federal Authority for Government Human Resources.
Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, stated that launching the transition programme is a turning point in achieving the Ministry of Finance’s strategic goal of “raising the efficiency and effectiveness of budget implementation and managing the financial position and cash flows of the federal government.”
He indicated that the federal government is about to reach the final stage, where only the third group of entities – scheduled to launch at the beginning of 2021 – remain, for the transition programme to be complete.
He said, “The Ministry of Finance is keen to continue cooperation and coordination with federal entities to improve government work and enhance resource management efficiency. Transitioning and adopting accrual accounting would strengthen the country’s leading position in global competitiveness indices, and will serve as a concrete indicator of the government’s standing among the world’s leading governments in applying the best management methodologies and government accounting standards.”
To develop government financial work and improve federal government entities’ efficiency and performance at par with the best international standards, the ministry recently held a virtual training workshop on the transition to accrual accounting. Specialists in assets, revenues, liabilities, expenses and closures from the Department of Financial and Administration Affairs, along with 429 ministry and federal government entities attended the workshop, which sought to raise awareness on the federal government programme to adopt accrual accounting.
Mariam Al Amiri, Assistant Under-Secretary of the Financial Management Sector at the MoF highlighted the importance of this workshop in raising the efficiency of specialised employees in national federal authorities on the various activities and accounting standards related to the transition programme.