Task Force EPSAS Governance setting public accounting standards in Germany with particular emphasis on the federal system Luxembourg, 2 October 2013 1

Modernising public accounting systems 1999–2003: Budget reform for the municipalities; adopted by the Conference of the Ministers of the Interior of the federal states (IMK) 2010: Revision of the Budgetary Principles Act; “GPSAS” 2012: Commentary on the chart of administrative accounts (adopted) 1999 … 2003 2010 2011 2012 Municipalities: accrual accounting mandatory in BW, BB, HE, MV, NI, NW, RP, SL, SN, ST accrual accounting optional in BY, SH, TH Federal states : accrual accounting in HB, HH, HE, NW Accrual accounting by the public sector on the basis of the German Commercial Code is possible, optional or even mandatory !

The “solar system” of governance in Germany Federal Statistical Office Committee for the standardisation of government accounting Working group on standards for cash-based budgets Working group on accrual accounting standards Working group on programme budgeting standards Court of Auditors

Committee for the standardisation of government accounting Members of the committee: Federation (Bund) 16 Federal States (Länder) Delegates usually from the MoF Participants without voting rights: Court of Auditors Federal Statistical Office ZDL (back-office for the MoF of the Länder) IMK (back-office for the MoI of the Länder) Committee under section 49a of the Budgetary Principles Act Bund BW BY BE BB HB HH HE MV NI NW RP SL SN ST SH TH Voting aspects: Voting rights only for members One man, one vote ! Bund has veto right !  can and will reject proposals if harmonisation and comparability might be at risk Regulatory aspects: Defined in an administrative agreement between the Federation and the Länder Meeting at least once a year Working groups might be established

Interaction between the parties involved Committee for the standardisation of government accounting request/proposal request/proposal decision decision tasks Bund reports/drafts 16 Länder 3 Working groups (incl. stat. office + CoA) input (staff, knowledge) input (staff, knowledge)

The regulatory framework of governance Budget Principles Act Administrative agreement between the Federation and the federal states on the standardisation of government accounting Standards for cash-based budgets  System of classification by object  System of classification by function Standards for accrual accounting  Chart of administrative Accounts including commentary  “GPSAS” Standards for programme budgeting  Integrated product framework Binding law for Bund and Länder Agreement on scope of and procedures for the committee Categories of standards (“old” and “modern”) Standards as binding templates for administrative regulations; standard comes into force by adopting an individual administrative regulation

Thank you !