financial data reporting system - ministry for finance circular |financial data reporting system...
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11slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
fdrs.mfei@gov.mt
Financial Data
Reporting System
22slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
09:00 – 09:15, Registration / Coffee
09:15 – 09:30, Video Address
Mr Alfred Camilleri, Permanent Secretary, MFEI
09:30 – 10:15, Understanding the system
Representatives from Budget Affairs Division &
National Statistics Office
10:15 – 10:45,Data submission
IT Representatives
10:45 – 11:15, Question Time
agenda
33slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
09:00 – 09:15, Registration / Coffee
09:15 – 09:30, Welcome Speech
Mr Alfred Camilleri, Permanent Secretary, MFEI
09:30 – 10:15, Understanding the system
Representatives from Budget Affairs Division &
National Statistics Office
10:15 – 10:45,Data submission
IT Representatives
10:45 – 11:15, Question Time
agenda
44slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Understanding the
system
Mr Renzo Farrugia
Budget Affairs Division
Mr Mark Galea
National Statistics Office
55slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� Back to the drawing board
� Mf circular
� Focus on income statement
� Focus on balance sheet
� Benefits of FDRS
� Periodic on-site review visits
agenda
66slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� Simple to use and administer
� Quick to implement
� Reduce substantially data collection cycle
� Accessible to public entities
� Easy mechanism to analyse, monitor and control financial information
� Streamline the current forms used by NSO and MFEI in collecting data
back to the drawing board | solution ?
77slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
MFEI
back to the drawing board | different users
National StatisticsOffice
TreasuryFINANCIAL DATA REPORTING SYSTEM
88slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
back to the drawing board | underlying standards
Other nonOther non--financial datafinancial data
Sufficient detail as per Sufficient detail as per management accountsmanagement accounts
MGAS / ESA 95MGAS / ESA 95
Malta Government Accounting System
(mainly based on IFRS)
European System of Accounts 1995
Facilitate monitoring
99slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
25 January 2010 – objectives
� monthly analysis, by the Ministry of Finance, the Economy and Investment, of expenditures and revenues of Government Entities.
� This is to be accompanied by querying facilities and clarifications as necessary, regarding expenditure and revenue trends and patterns, along with variance analysis as the financial year progresses;
� utilisation of data by the National Statistics Office;
� the reporting of end-of-year accruals positions to the Treasury, through the collection of accruals data.
mf circular | financial data reporting system
1010slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Statement of Comprehensive Income (P/L)
Statement of Comprehensive Income (P/L)
??Statement of Financial Position (balance sheet)
Statement of Financial Position (balance sheet)
??
mf circular | financial data reporting system
1111slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mtThis is NOT a replacement of your accounting software
This is a financial reporting tool
1212slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� Monthly basis – entities are required to submit the income statement (profit and loss account) within 15 days following the end of each month
� Quarterly basis – entities are to submit their balance sheet position and other data required within 15 days following the end of each quarter
� Entities are still required to submit to MFEI (in electronic format or printed), the audited financial statements and management letter in accordance with the timeframes stipulated in the relevant Act, Deeds, Memorandum of Understanding or equivalent
mf circular | timing
1313slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� The withholding of tranches due to the entity concerned until such returns are compiled may need to be considered, in the event of default in the submission of returns.
� It is the function of Permanent Secretaries within each Ministry to follow-up and ensure compliance by Government Entities within their respective portfolio, with the provisions of this Circular.
mf circular | defaulters?
1414slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� For security purposes, it shall be the responsibility of the entity concerned to inform this Ministry immediately when a user has terminated employment within the respective entity, such that arrangements may be made for discontinuation of access to the system.
mf circular | change of users
1515slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on ‘income statement’ | income
distinction between
� Total own generated revenue
� Government subvention
TOTAL INCOME GENERATED TOTAL INCOME GENERATED
1616slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on ‘income statement’ | expenditure
Contractual services
Professional services
Training
Hospitality
Incidental expenses
Bank interest payable.
Bad debts written off
Increase in provision for bad debts
Decrease in provision for bad debts
Other provisions
Depreciation charge
Other recurrent expenditure funded through EU Grants
Other expenditure
Tax expense
Salaries and wages
Bonus and income supplement
Social Security Contributions
Allowances
Overtime
Utilities
Material and supplies
Repair and upkeep
Rent
International memberships
Office services
Transport
Travel
Information services
Classification of expenditure
www.fdrs.gov.mt
1717slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on ‘income statement’ | expenditure
Classification of expenditure
� Stick to the classification of expenditure identified in the template
� Reduce the use of ‘other expenditure’ to suit miscellaneous items
� Other provisions (accounting related)
1818slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on ‘balance sheet’ | presentation
based on MGAS 1
TOTAL ASSETS - TOTAL LIABILITIES = CAPITAL
CURRENT ASSETS
NON CURRENT ASSETS
(property, plant & equipment)
CURRENT LIABILITIES
NON CURRENT LIABILITIES
CAPITAL
RESERVES
http://www.gov.mt/page.asp?i=187&l=1
1919slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
counterpart data
other statistical information
2020slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on ‘balance sheet’ - NSO
� In order to ensure that our Office will be in a position to comply with Malta’s international reporting requirement, counterpart information is being requested for certain financial assets and liabilities.
WHAT IS COUNTERPART INFORMATION?
2121slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� Counterpart information is the whom-to-whom relationship.
� The entity (institutional unit) with whom a particular transaction takes place.
� These entities are grouped into 6 institutional sectors.
focus on ‘balance sheet’ - NSO
2222slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
The sectors are:
� Non-financial corporation sector – their principal activity is the production of goods and non-financial services e.g. manufacturing and utility providers companies.
� Financial corporations sector – corporations engaged in financial intermediation e.g. banks, insurance companies, stockbrokers.
� General Government sector – includes all government departments and ministries, extra budgetary units and local councils.
� Households – individuals or groups of individuals e.g. self-employed persons and individuals.
� Non-Profit Institutions serving households (NPISH) – non-profit making entities e.g. church institutions and social clubs.
� Rest of the World (ROW) – includes all foreign transactions, including those made with the EU Commission.
focus on ‘balance sheet’ - NSO
2323slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� ESA Manual on Government Deficit and Debt sets clear guidelines on classification of EBUs
� Most important considerations are:� Is the entity an institutional unit?� Is the public institutional unit
market or non-market?Non-market producer (50% rule), i.e. if less than 50% of production costs are covered by sales
� NSO annually publishes a list of EBUs
focus on ‘balance sheet’ - NSO
http://www.nso.gov.mt/statdoc/document_view.aspx?id=2544&backUrl=news_by_date.aspx%3fretainCriteria%3dtrue
2424slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
In what ways will
FDRScontribute to
Public Entities
2525slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
benefits of system | public entities
� Reduce time and resources
� Only ‘one form’ to fill in financial information required by MFEI and NSO
� Transmission is done electronicallythrough one dedicated webpage
� Updates in template automatically visible to users
2626slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
benefits of system | public entities
� Automatic e-mail confirmation sent upon submission of data
� Data may be stored on one’s computer for later retrieval
� XL sheet functions are still applicable in submitting this data
2727slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
In what ways will
FDRScontribute to MFEI
2828slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Advisory role
Issuing directives
Desk-top monitoring Annual returnsAudited Accounts/
Mgt LetterManagement
Accounts
Annual Return /Quarterly mgt a/c’s
Business Plan / Capital Projects
Ad Hoc
Funding for recurrent / capital
Lease / Buy for Property
Ad Hoc
Monitoring
‘Chasing’ role Chasing audited a/c’s & mgt letters
Chasing mgt accounts
Chasing Annual Returns
benefits of system | mfei
Directives on website
2929slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
FDRS Implementation
Advisory role
Issuing directives
Desk-top monitoring
Ad Hoc
Funding for recurrent / capital
Lease / Buy for Property
Ad Hoc
‘Chasing’ role
Management Accounts
Annual Return /Quarterly mgt a/c’s
Business Plan / Capital Projects
Chasing mgt accounts
Chasing Annual Returns
Annual returnsFDRS FDRS
FDRS FDRS
FDRS
Audited Accounts/ Mgt Letter
Chasing audited a/c’s & mgt letters
benefits of system | mfei
3030slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Desk-top monitoring Annual returnsAudited Accounts
31.12.08Management
Accounts
Current response rates
response rates 81% 79%
69%
8%response rates mgt a/cs 30.09.09
response rates mgt a/cs for 31.12.09
benefits of system | mfei
3131slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
8%response rates mgt a/cs for 31.12.09
100%
FDRS Implementation
benefits of system | mfei
3232slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
benefits of system | reports
� aggregate entity reports
� the possibility to filter and drill down data
� enable us to analyse data vis-à-vis time, particular items of expenditure / income, against other entities, etc.
� monitor both the horizontal and vertical financial issues arising in public entities and across government.
3333slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
monitoring of public entities
Other initiative taken by MFEI
periodic on-site review visits . . .
3434slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
FDRS Implementation
Advisory role
Issuing directives
Desk-top monitoring
Ad Hoc
Funding for recurrent / capital
Lease / Buy for Property
Ad Hoc
‘Chasing’ role
Management Accounts
Annual Return /Quarterly mgt a/c’s
Business Plan / Capital Projects
Chasing mgt accounts
Chasing Annual Returns
Annual returnsFDRS FDRS
FDRS FDRS
FDRS
Audited Accounts/ Mgt Letter
Chasing audited a/c’s & mgt letters
other initiative | mfei
entity-risk assessment
3535slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
periodic on-site review visits
Considerations of onsite visits Management accounts
Budget EstimatesIssues raised from mgt letter
Compliance with MFEI Directives
Cost structure analysis
management of own resources
3636slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Public E
ntitiesB
udget Affairs
Management accounts
Budget EstimatesIssues raised from mgt letter
Compliance with MFEI Directives
Cost structure analysis
management of own resources
Advisory role
Issuing directives
Desk-top monitoring Management Accounts
Annual Return /Quarterly mgt a/c’s
Business Plan / Capital Projects
Ad Hoc
Funding for recurrent / capital
Lease / Buy for Property
Ad Hoc
‘Chasing’ role Chasing mgt accounts
Chasing Annual Returns
Annual returnsFDRS FDRS
FDRS FDRS
FDRS
Considerations of onsite visits
Audited Accounts/ Mgt Letter
Chasing audited a/c’s & mgt letters
periodic on-site review visits
3737slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
focus on . . . | on-site reviews �visit procedure
2. Planning phase
3. Fieldwork phase
4. Closing meeting
5. Reporting phase
6. Follow up phase
Opening meeting
Issues raised
14 days given torespond in writing
Visit Closure Letter
1. Preliminary survey Understand entity
3838slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
� certified public accountants by profession
� confidentiality
� independence and ethics
� comply with our established
Manual of Policies and Procedures
focus on . . . | on-site reviews �our reviewers
3939slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
Mr Renzo FarrugiaBudget Affairs Division
Mr Mark GaleaMalta Statistics Authority
THANK YOU
4040slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4040
09:00 – 09:15, Registration / Coffee
09:15 – 09:30, Video Address
Mr Alfred Camilleri, Permanent Secretary, MFEI
09:30 – 10:15, Understanding the system
Representatives from Budget Affairs Division &
National Statistics Office
10:15 – 10:45,Data submission
IT Representatives
10:45 – 11:15, Question Time
agenda
4141slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4141
Data Submission
Mr Stefan Farrugia
Senior Implementation Consultant
Computime Ltd.
4242slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4242
Architecture
4343slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4343
Security
� Secure XML Web Service to secure data
� Data transmitted over HTTPS
� Passwords are encrypted� No reading of passwords
� Updates of passwords handled by the users
4444slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4444
Steps
1. Received Login & Password by Email
2. FDRS Alerts for new submission period
3. Authenticate – Change password on first use
4. Select Template5. Select Period6. Fill in Data – No Internet Connection required at this time
7. Submit
8. Receive Acknowledgement by email
4545slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4545
Demo
4646slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4646
Thank You
Mr Stefan Farrugia
Senior Implementation Consultant
Computime Ltd.
4747slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4747
09:00 – 09:15, Registration / Coffee
09:15 – 09:30, Video Address
Mr Alfred Camilleri, Permanent Secretary, MFEI
09:30 – 10:15, Understanding the system
Representatives from Budget Affairs Division &
National Statistics Office
10:15 – 10:45,Data submission
IT Representatives
10:45 – 11:15, Question Time
agenda
4848slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4848
QUESTION TIME
4949slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
4949
09:00 – 09:15, Registration / Coffee
09:15 – 09:30, Video Address
Mr Alfred Camilleri, Permanent Secretary, MFEI
09:30 – 10:15, Understanding the system
Representatives from Budget Affairs Division &
National Statistics Office
10:15 – 10:45,Data submission
IT Representatives
10:45 – 11:15, Question Time
agenda
5050slide number Ministry of Finance, The Economy and Investment
www.fdrs.gov.mt
5050
fdrs.mfei@gov.mt
IT Related issues 25998 224Business issues 25998 450
www.fdrs.gov.mt
Financial Data
Reporting System
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