Analysis of Accounting Systems, Reorganization of Accounting Records, and Transition to the Accrual Basis
The transition from the cash basis to the accrual basis is a strategic step and a project adopted by the Ministry of Finance to improve the quality of financial accounts and enhance transparency in the public sector to keep pace with various operations. Meras Certified Public Accountants has executed transition, post-transition sustainability, and policy and procedure preparation projects for government entities. The project deliverables have included the following:
- Financial statements and related notes in accordance with International Public Sector Accounting Standards (IPSAS).
- Gap analysis report.
- Preparation of an accounting policies and procedures manual for the government entity, aligned with Ministry of Finance requirements.
- Review of the entity’s current policies and procedures and their alignment with Ministry of Finance requirements and international standards.
- Transition of the entity from the cash basis to the accrual basis according to approved procedures.
- Inventory and preparation of the entity’s asset register.
- Provision of sustainability services and bookkeeping post-transition to the accrual basis.
- Performance evaluation reports submitted to management.
Furthermore, upon completion of the entity’s transition process, sustainability must be applied. This involves the simultaneous continuation of accounting records on both a cash basis and an accrual basis, and the submission of the final account, enabling the entity to include its data in the approved state budget.