Association of Public Finance Accountants of Sri Lanka – Review 2023
Commencing the year with commendable achievements in the year 2022, the Association embarked on a journey marked by strategic projects, important events, and a commitment to excellence. At the outset of 2023, the Association undertook the implementation of two significant projects: the continuation of the UNDP Program and the initiation of the USAID project. These projects underscore our dedication to advancing public financial management practices in Sri Lanka and strengthening our collaboration with international partners.
The Association's calendar for 2023 included some key events. The Annual General Meeting (AGM) held in April 2023 provided a platform for members to engage in constructive dialogue, fostering a sense of community and shared purpose. The annual conference in October 2023 facilitated the exchange of knowledge and ideas, contributing to the professional growth of our members.
An integral part of our annual agenda was the Best Annual Report & Accounts (BARA) competition, held during mid-2023. This competition served as a showcase of excellence in financial reporting, highlighting the commitment of our members to transparency and accountability. The culmination of the BARA competition included awards presented at the end of the year, recognizing outstanding achievements of public sector institutions in their financial reporting.
The Association anticipated and successfully executed various short-term capacity-building programs throughout the year and conducted the CPFA examinations for professional-level students. These initiatives were designed to enhance the skills and expertise of our members, ensuring they stay abreast of the latest developments in public finance and accounting. A significant milestone was achieved with the launch of the Master of Public Financial Management (MPFM) degree program in mid-2023. This educational endeavor, supported by Ministry approval obtained in November 2022, represents a crucial step in our commitment to nurturing the next generation of public finance professionals.
UNDP Project Summary (Year 2023)
In the year 2023, the Association of Public Finance Accountants of Sri Lanka successfully concluded its partnership with the United Nations Development Program (UNDP) initiated in March 2022. This collaborative effort aimed to enhance the financial management capabilities of local authorities within the Northern, Eastern, North Central, and Uva provinces. The project, comprised of three pivotal activities, namely the Diploma in Local Government Financial Management (DLGFM) program, the development of an Internal Audit (IA) manual for local authorities, and the execution of the Best Annual Report & Accounts (BARA) competition among participating local authorities.
Diploma in Local Government Financial Management (DLGFM) Program: The DLGFM program, a cornerstone of the UNDP project, unfolded in two distinct phases. The first phase commenced in March 2022 and was successfully conducted in the Northern, Eastern, North Central, and Uva provinces. The program concluded with examinations held in December 2023 and January 2024. The results were meticulously finalized, paving the way for award ceremonies held across the provinces during April and May 2023. Subsequently, a specialized Sinhala medium DLGFM program was launched in December 2022 for local authority staff in the Eastern province. This program continued into 2023, with examinations conducted in August. The results were released in September, and successful candidates were honored with awards by the end of that month. In total, the DLGFM program celebrated the achievement of 220 candidates obtaining their well-deserved Diploma certificates.
Simultaneously, the preparation of the Internal Audit (IA) manual for local authorities was a key focus during the project's tenure. Over a six-month period in 2023, two subject matter experts, guided by a panel of five specialists in Internal Auditing, compiled the comprehensive IA Manual. The culmination of this effort occurred in September 2023, with the final document presented to the UNDP, showcasing a robust guide for enhancing internal audit practices within local authorities in Sri Lanka.
An additional highlight of the project was the execution of the provincial Best Annual Report & Accounts (BARA) competition. This competition, involving participants from the four provinces benefiting from the DLGFM program, unfolded during June and July 2023. The winners were honored at a prestigious ceremony hosted at the Anuradhapura Provincial Council Auditorium in September 2023, recognizing excellence in financial reporting among local authorities.
The UNDP project, spanning from March 2022 to October 2023, achieved its objectives with commendable success. The DLGFM program significantly contributed to building the financial management capabilities of local authorities, resulting in 220 individuals obtaining their Diploma certificates. The IA Manual developed during this period stands as a testament to the commitment to best practices in internal auditing, while the BARA competition showcased and rewarded excellence in financial reporting among participating local authorities. The Association of Public Finance Accountants of Sri Lanka expresses its gratitude to the UNDP for their support and celebrates the successful completion of this impactful initiative.
USAID Project Summary (Year 2023)
In February 2023, the United States Agency for International Development (USAID) initiated a comprehensive program to enhance knowledge and proficiency in Sri Lanka's Public Sector Accounting Standards (SLPSAS) 11-20. This project was designed to address the critical need for capacity building among public sector accounting professionals in Sri Lanka, contributing to improved financial management and transparency across the country.
The program commenced in Colombo and extended its reach across all provinces of Sri Lanka. The initiative aimed to provide in-depth training on SLPSAS 11-20, ensuring that accounting professionals at various levels within the public sector gained a thorough understanding of these standards. Recognizing the importance of utilizing the best available resources, the project engaged a team of highly qualified and experienced professionals for teaching. These experts, well-versed in the practical aspects of SLPSAS 11-20, were instrumental in delivering high-quality training sessions to the participants.
The project's commitment to inclusivity was evident in its extensive coverage of all provinces in Sri Lanka. By disseminating knowledge across the entire country, the program aimed to create a more uniform and standardized understanding of SLPSAS 11-20, promoting consistency and efficiency in public sector accounting practices. Over the course of the year, the project successfully trained 700 public sector accounting professionals.
Strategic Partnership and Professional Advancements
In 2023, the strategic alliance between the Association of Public Finance Accountants of Sri Lanka (APFASL) and the Chartered Institute of Public Finance and Accountancy (CIPFA) in the United Kingdom reached new milestones by renewing the MOU up to the end of 2025, ushering in a wave of professional development and international recognition for our members.
An important outcome of the Memorandum of Understanding (MOU) between APFASL and CIPFA(UK) was the introduction of a unique opportunity for our members. CIPFA(UK) generously extended an invitation for APFASL members to become "Affiliate" members of CIPFA(UK), providing them access to an internationally recognized public sector financial qualification. We are delighted to report that 48 of our members seized this exceptional opportunity during 2023. By affiliating with CIPFA(UK), these members have not only demonstrated their commitment to excellence but have also embarked on a journey toward acquiring a prestigious international qualification in public sector financial management.
APFA/CPFA Annual Conference 2023
The Association of Public Finance Accountants of Sri Lanka (APFASL) successfully hosted its Annual Conference 2023 on the 3rd of October 2023, bringing together over 100 members and esteemed invitees. This year's conference took on a unique dimension, centering around research, with three influential papers being presented and discussed, shedding light on critical aspects of the nation's financial landscape.
The conference had a distinguished lineup of guests and speakers, including Mr. Suresh Shah, Chairman of CTC Ltd, and Head of the SOE Restructuring Unit of the Ministry of Finance, who graced the occasion as the chief guest. Mr. Brian Blood, CEO of the Confederation of Asia Pacific Accountants (CAPA), delivered the keynote address, sharing his valuable insights and experiences on current developments in public sector accounting and reporting in the international arena.
Best Annual Report and Accounts Awards Ceremony 2023
In a grand event held at the BMICH, Colombo, on December 4th, 2023, the Association of Public Finance Accountants of Sri Lanka (APFASL) showcased the pinnacle of financial reporting excellence in the public sector with the announcement of the winners for the seventh annual Best Annual Report & Accounts (BARA) awards competition.
This year's national competition, based on the financial accounts of 2022, received an overwhelming response, with a record-breaking 238 entries. The BARA Awards, the flagship event organized by APFASL, aim to promote and uphold financial accounting and reporting standards in Sri Lanka, contributing to enhancing the overall quality of public financial management in the country.
The competition featured twelve categories covering both central government and local government institutions. Evaluation criteria included adherence to Ministry of Finance circulars related to financial account preparation and presentation, as well as compliance with Sri Lanka Public Sector Accounting standards. A total of 12 Gold, 17 Silver, and 12 Bronze awards were distributed among the participants. Additionally, 154 entities received "compliance" recognition, while 41 were acknowledged for their active "Participation" in the competition.
Challenges Faced in 2023
The persistent socio-economic challenges that prevailed from 2022 onwards created a difficult environment for public servants. These conditions hindered their ability to engage in capacity-building and training programs independently. The limitations imposed on the government budget had a direct impact on institutional nominations to training programs. The reduced allocation for such initiatives restricted the association's ability to offer comprehensive training opportunities to its members.
The limited availability of donor funds posed a significant challenge. The necessity to allocate funds to more immediate humanitarian priorities in the country resulted in a rationing of available resources for training and capacity-building initiatives. As a consequence of the challenging conditions, the Association was compelled to make a difficult decision. The Master of Public Financial Management (MPFM) degree program, initially scheduled for 2023, had to be postponed to 2024 due to the constrained circumstances.
Despite these challenges, the Association remained committed to its mission. Efforts were directed towards finding alternative ways to deliver value to members, exploring virtual training possibilities, and advocating for increased support for professional development in subsequent budgetary allocations. Recognizing the need for collaborative solutions, the Association actively engaged with stakeholders, government bodies, and international partners to highlight the importance of sustained investment in public financial management education and training.
Outlook for 2024:
The Association is cautiously optimistic about the prospects in 2024. Plans are in place to resume and enhance the Master of Public Financial Management (MPFM) degree program, with a renewed focus on addressing the backlog of training needs and fostering professional development among public servants.
As we encapsulate the activities and achievements of 2023, the Association of Public Finance Accountants of Sri Lanka remains steadfast in its mission to promote excellence in public finance management. We express our gratitude to our members, partners, and stakeholders for their unwavering support, and we eagerly anticipate the opportunities and challenges that lie ahead in our continued pursuit of excellence.
