General Background Public accounting and financial reporting in Albania is currently done on cash bases with some accrual elements (on liabilities and assets) and it is the responsibility of MoF. The main achievements: the successful implementation of the Oracle based IT system (dual accounting, automatic financial consolidation etc.) unified chart of accounts for all level of governments and fully harmonized between budgeting and accounting (easer financial consolidation, easer budget monitoring) The main weakness/challenges: financial statements fall short of any national or international standards (assets, liabilities, expenses and revenues are reported on an incomplete bases) there are deficiencies in recognition and measurement of data (anything which is not budgetary transaction is basically not recognized)

Approach to implementing public sector accounting standards chosen by our country Albania is in the very early stages of the public accounting and reporting implementation reform as part of the Albanian Strategy on PFM Reform approved by CoM decision on December 2014. It’s objective is to ensure a public finance system that promotes transparency, accountability, fiscal discipline and efficiency in the management and use of public resources for improved service delivery and economic development In the framework of PFM reform is defined that MoF will move to accrual accounting which requires the introduction of International Public Sector Accounting (IPSAS). MoF is the responsible to implement the standards.

Approach to implementing public sector accounting standards chosen by our country External support is planed on the IPSAS Implementation through the Project on Development of Public Sector Accounting, which is under approval process The proposed project encompasses activities under two broad components: Component 1: Development of public sector accounting and financial reporting in line with IPSAS Assessment of the current situation on public accounting Development of public accounting legal and regulatory framework (translation of IPSAS into Albanian, development and enactment of national accounting legislation, national level implementation guidance) Review and amendment of the national chart of accounts Gradual implementation of international accepted accounting standards in line with IPSAS

Approach to implementing public sector accounting standards chosen by our country Component 2 - Development of MoF capacities and of professional accounting skills for public accounting practitioners Technical capacity building of the Financial Reporting Unit and Central Harmonization Unit (CHU) at the MoF Development of professional accounting skills and a sustainable public sector accounting training mechanism (training process is foreseen to be done in two years): training of a selected number of financial officers to obtain an internationally recognized professional qualification certificate training of a sufficient number of trainers through the train of trainers approach institutionalization of a local training and certification program at a local institution to ensure the sustainability of the development of public accounting skills in the long-run

Progres to date No progress to date. Very interested on challenges that might be experienced on IPSAS implementation and how they can be overcome.