One of the benefits of a project-managed approach to International Financial Reporting Standards with outputs on time on budget, is the epithet ‘World Class’. Advised by Public Sector Consultants, multi-disciplinary project teams have forged ahead with the key focuses of CIPFAs Local Authority Accounting Panel and are on course for full IFRS compliance in 2010/11.
Given the completion of a Project Initiation Document in February 2009 and the acceptance by Enfield’s Audit Committee of the resultant plan, the teams have delivered their outputs in an atmosphere of cooperation and team working. IFRS Accounting Policies, Asset Valuation Manuals, Training and the detailed impact analysis are all complete.
IFRS is not just about IFRS, ironically. At present the International Standards Boards are looking at marrying performance and financial information and this has become a key theme, with municipalities internationally that have adopted IFRS, being mentioned in the Audit Commission’s publication ‘World Class Financial Management’. Other issues involve a long and hard look around Asset Management methods and modernising these in conjunction with IFRS. Don’t forget the impacts on contract registration and management. The ability to think out in advance potential problems and cure them in advance can save problems in the future, especially around components and networks. Set your accounting policies wrong and you could face an audit qualification for not counting office furniture as a networked asset or water in a reservoir as inventory (these are real cases from abroad). In South Africa and Australia the introduction of IFRS led to up to a 50% increase in audit qualifications. Think on it, where will our auditors learn from? They will learn from the experience of auditors worldwide at their international audit forums. It makes sense therefore to draw on our Company’s international experience to the same effect, just what Enfield LBC have done.
IFRS can be the catalyst to cultural change, cross-departmental working and improved financial management. Appropriate project management can bring cooperative working benefits that will last beyond IFRS conversion.
Enfield LBC has used our consultant Frank Gardiner (pictured) to help them adopt IFRS. Frank is CIPFA qualified and has spent 3years in South Africa. Enfield continues to use his expertise, much to the Audit Commission’s approval.