/library/oar/handle/123456789/7411 Thu, 06 Nov 2025 07:49:56 GMT 2025-11-06T07:49:56Z /library/oar/handle/123456789/123133 Title: The implications of IPSAS23 for the Maltese government accounting on EU grants : a case study on steps Abstract: The purpose of this study is that of gaining a deep understanding of how grants from the European Union Structural Funds are accounted for in the Maltese Government Accounts, which are presently based on cash-accounting and how they would need to be accounted for, once the accounting system is switched to accrual accounting, based on IPSAS standards. The study analyses the present system and procedures, identifies the needed changes, assesses whether the quality of financial information will be enhanced, identifies any transitional issues and puts forward recommendations for a smooth transition to IPSAS 23. Research methodology subdivides in two parts. The first part is based on interviews with officials from key stakeholders in order to build a better understanding of how the present system works. Limitations in the system are also discussed. This part focuses on a case study, the STEPS scheme, and how the different stakeholders are linked together. The second part is also based on interviews, but focuses on the proposal of a system based on accrual accounting. The research benefits from the. interviewees' expertise in order to identify possible solutions. The Maltese government pre-finances all projects which are co-financed by the European Union and then applies for refund once the project is certified as compliant with EU rules. The EU Grants are recorded in the national government accounts when they are received. Under accrual-based accounting, these grants would be recorded once certification of the project is complete. The implementation of IPSAS 23 would require additional structures to ensure that restrictions and conditions attached to each grant are being adhered to, prior to revenue recognition. The European Union's advance payment cannot be recorded as revenue in the National Government accounts. This payment would have to be treated as deferred income and recognized as revenue once the project that matches it, is certified. Transferred EU Grants can be reclaimed back by the EU upon the discovery of post-payment irregularities in the auditing of these projects. This highlights the importance of an appropriate contingent liability, quantifiable if possible, in the notes to the accounts. The current system and its present reporting makes it very difficult to have a clear picture of the financial assets and liabilities in connection with the EU grants and matching the refund with the pre-financed funds. There is also the need for consistency in the treatment of items such as provisions in case of irregularities and the quantification of the contingent liability. In order to address these issues, one recommends the expansion of the role of the EU Paying Authority to cater for, amongst others, EU-funded projects management, monitoring and verification, refund applications and management of receipts from the EU, efficient management of the advance payment, timely provision of accounting information for all the users and the provision of a set of financial statements incorporating all revenue, costs, assets and liabilities in connection with our country's financial relationship with the EU. The system proposed involves the combination of an effective risk management framework and the provision of clear and reliable information that will allow an easier assessment of the benefits and risks provided by these EU grants and can be used by the Executive and the Public Service top management to improve the net benefits from EU grants and by the layman to exercise his democratic rights in a more informed context. Description: H.DIP.PUBLIC ACCTY.&FIN. Tue, 01 Jan 2013 00:00:00 GMT /library/oar/handle/123456789/123133 2013-01-01T00:00:00Z /library/oar/handle/123456789/101673 Title: The motivation and expected added value of public administration staff benefitting from ESF scholarships Abstract: The purpose of this study is to understand better the value of ESF Scholarships and its empowerment to strengthen public administration skills. This study initially analyses how the Public Service Reform brought a change in the Public Service to strengthen the skills and abilities of public administration staff, taking into account, a particular initiative, that of introducing in-service training activities for public officers. In addition to this, particular emphasis was made on the study of EU Funds and the benefits of the ESF 4.100 project - Developing Core Skills in the Public Service. This project offers sponsorship schemes targeted mainly towards supporting the professional and academic development of Public Service officers whilst keeping in view the training and development needs in public administration. The core of this research is largely qualitative based on a case study with a number of interviews and questionnaires with ESF holders who either followed or are still following a scholarship. These interviews and questionnaires determine the main objective of this dissertation, that of identifying the motivation and expected added value of public administration staff. Besides this, quantitative data was also collected by means of participants' list tables. The final stage of this study puts forward recommendations for a smooth transition and emphasizes on the importance of having more courses catered for public administration staff working in the Finance Section. Description: H.DIP.ACCTY.&FIN. Tue, 01 Jan 2013 00:00:00 GMT /library/oar/handle/123456789/101673 2013-01-01T00:00:00Z /library/oar/handle/123456789/101669 Title: A better budgeting approach in the public sector Abstract: As countries develop and incomes begin to rise, public spending tends to shift towards infrastructure maintenance and social programs. The traditional public finance system in Malta does not support these changing needs. The challenge to public financial management in Malta today is not the same as that faced in the previous years. Today the challenge is more in terms of strategic allocation of resources and equity of public spending, and greater efficiency in the use of public resources. The main objectives of this study is to evaluate the shift from a traditional budgetary process into a 'better budgeting' approach that advocates an outcome budgeting process and multi-year budgetary model in order to allocate government's resources more efficiently, effectively and economically. Literature widely suggests that there is no single approach to performance budgeting that can succeed in all countries. The challenge to shift from incremental budgeting towards results based budgeting is proving to be long and difficult. A great deal of the annual budget process remains incremental and inputs still play a key role in most countries. It is difficult to measure the success of government initiatives to introduce a coherent approach to budgeting and performance appraisal to achieve specific budgetary objectives. However the qualitative data available from case study reports indicate that successful implementation of such reforms could lead to benefits including increased transparency, improving allocative efficiency and strengthening fiscal discipline. From results obtained in the local research it emerged that currently there seems to be a lack of understanding of how local Public Service Budgeting operates. The budget process focuses on a short-term perspective and is riveted on inputs. Moreover line ministries do not have sufficient autonomy. Following examples from other economies new budgeting reforms such as the introduction of macroeconomic forecasts of governments' future revenue, expenditure, deficit and surplus and debt, fiscal management, top-down budgeting, performance management systems and integrated financial management information system need to be launched. These could be incorporated in a Medium-Term Expenditure Framework (MTEF) leading to improve allocation of public resources and bolster fiscal discipline. Description: H.DIP.BANK.&FIN. Tue, 01 Jan 2013 00:00:00 GMT /library/oar/handle/123456789/101669 2013-01-01T00:00:00Z /library/oar/handle/123456789/100817 Title: The role of the department for local government in accomplishing good governance at local councils Abstract: Under the umbrella of good governance there have been numerous discussions over the last two decades. Institutions trend to make aid conditional upon reforms in encouraging real policy changes, insisting upon performance and good governance as a prerequisite for aid. This is a means of requiring an institution to demonstrate the seriousness of its commitment to economic and social reforms. Therefore, in the implementation, a good governance concept should involve the active cooperation of three elements: central government, local government and civil society. The Department for Local Government was established with a mandate to direct, lead and control Local Councils in Malta, and to such extent has managed quite effectively. This study attempts to examine whether the Department is applying the principles of good governance at local level and to put current understanding into perspective, by assessing the current situation at the Local Councils. A survey method based on a set of interviews was used to carry out the investigation. The main conclusion of this study was that the Department for Local Government and Local Councils neglect some important aspects of good governance. Both need to fulfill core good governance functions, ultimately: public accountability, transparency, the role of law, anticorruption measures, civil society participation, and overall respect to human rights. Description: H.DIP.ACCTY.&FIN. Tue, 01 Jan 2013 00:00:00 GMT /library/oar/handle/123456789/100817 2013-01-01T00:00:00Z