The CFRR supports the implementation of public sector accounting and auditing frameworks that are in line with international standards and international good practices, and furthers capacity building efforts in both these areas. The Center assists governments in designing realistic roadmaps to transition to full accrual accounting, often as part of broader public financial management reforms, taking into account constraints in participating countries’ human resource and IT infrastructure. Alongside technical assistance, we aim to build awareness among a wide range of stakeholders of the benefits of improved government financial reporting and effective auditing of public finances, which include improved public sector governance, reduced fiscal risk, and greater accountability and transparency of public sector entities.
Good governance is central to strong economic growth. Continued growth deceleration in emerging and developing economies, coupled with a decreasing trend in foreign resource inflows from developed economies, creates an increased need for governments to better control public resources to achieve effective service delivery. Enhanced budget accountability and control, transparency of public finances and effective management of assets and liabilities can only be achieved through accurate and reliable financial accounting and reporting which lends itself to external audit and scrutiny, and comparison of actual revenues and expenditures with approved budgets. Modern accrual based systems of accounting and financial reporting enable these efforts by capturing all present and future economic benefits and obligations and providing information about estimates, uncertainties, and significant assumptions underlying the financial information that would otherwise not be captured under cash based systems. These elements are key inputs in planning future service delivery and limiting the economic burden on future generations.