The UAE Ministry of Finance, MoF, announced on Sunday the successful launch of the first phase of government entities to transition to accrual accounting.
Accrual accounting is method by which, revenue and expenditure are recorded, whenever they are incurred, irrespective of when the cash exchange occur.
The process took place during the work-from-home period, and demonstrates the creativity and flexibility afforded by the ministry, through the various remotely applied tech-solutions to ensure the development of the federal government financial system, said a MoF statement on Sunday.
The ministry used telecommunication platforms to host virtual meetings and trainings for users of the federal government financial system, and included online surveys to collect feedback on the training and testing sessions to ensure the system’s efficacy.
The transition to accrual accounting is expected to increase the efficiency of the federal budget and improves public financial management in the country.
The first phase of the project included the Ministry of Economy, the Ministry of Community Development, the Ministry of State for Federal National Council Affairs, the Federal Tax Authority, the Federal Customs Authority and the UAE Space Agency.
H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, reaffirmed the UAE government’s keenness to plan for the future through innovative projects that support the wise leadership’s vision to make the UAE the best country in the world by the UAE Centennial 2071.
He also indicated that the successful launch of the accrual accounting programme is another step towards achieving the goals of the UAE Vision 2021, which aims to enhance the country’s position on global competitiveness indices.
Sheikh Hamdan lauded the cooperation between federal authorities with the Ministry of Finance in the launch of this project, praising their keenness to improve government work and resource management in accordance with the best international standards.
H.H. noted that the Ministry of Finance will continue to work with its partners to launch strategic initiatives that reflect the ministry’s regional and global leadership in managing financial resources to achieve comprehensive and sustainable development across the country.
In turn, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, noted that the launch of federal government transition programme was a success, despite the exceptional circumstances that country and world are witnessing. There were continuous efforts from the teams in MoF in cooperation with all federal entities, as MoF led and directed 36 federal entities during the transition phase.
It also organised interactive sessions and training workshops, and applied new financial transactions based on accrual accounting. Work is still ongoing to launch the second and third groups of the transition programme, based on the approved plan.
“An accrual basis of accounting will have a positive effect on the country’s economy and society, in terms of achieving the development and sustainability of the financial system, as well as managing the financial resources of the federal government efficiently and effectively. It will also enable competent authorities to enhance the transparency of financial reports in line with the requirements of the International Monetary Fund and global competition standards,” Al Tayer added.
Read More: UAE’s non-oil trade grew 4.4% in 2019