This Slideshow is about the suggested Accounting System for Sri Lankan government entities. Basically it is about the usage of current Accounting system, Cash based Accounting System & the proposed system, Accrued based Accounting System in Ministry of Irrigation & Water Resources Management, Sri Lanka. This is not not an individual work of mine. This is a team effort of myself, Chandi Damayanthi & Janith Perera, who are undergraduates in Sabaragamuwa University of Sri Lanka.
3. Vision
Prosperous Sri Lanka through Water and Irrigation
Heritage.
Mission
Providing well being of community while
fulfilling all water needs through Water Resources
Management.
4. The main Functions of the Ministry
Formulation of policies and implementation of
Projects and Program.
Fulfilling obligations under “Mahinda Chinthana –
Vision for the Future” and overall national policies.
Promotion, construction, operation, maintenance and
management of Irrigation systems, Rain water
harvesting, and Ground water development.
5. Salt water exclusion program.
Drainage and Flood protection.
Prevention of the pollution of rivers, streams,
reservoirs and other water bodies.
Engineering consultancy services and construction.
Implementation of legislative enactments relevant to
the subjects and Institutions under the Ministry.
Matters relating to Mahaweli Development.
6. Divisions & Branches of
the Ministry
Water Resources
Engineering Services
Planning & Plan
Implementation
Mahaweli Systems
Lands & Land
Development
Finance
Administration
Internal Audit
Irrigation Management
Division
Institutions of the
Ministry
Irrigation Department
Mahweli Authority of Sri
Lanka
Water Recourses Board
Central
Engineering Consultancy
Bureau
7. Cash receipts, cash payments & cash balances are
mainly considered
Cash base accounting enhance the
comprehensiveness & transparent of financial
reporting of cash receipts, cash payments & cash
balances
8. It enhance comparability with the entities own
financial statements of previous periods & with the
financial statements of other entities it is which
adopt the cash base of accounting
9. Only cash or cash equivalents, received or paid by
the entity within the time period is considered.
Assets valuation is not implemented
Debtors & creditors are not maintained
Asset depreciation is not considered
Profit or loss cannot be ascertained
10. It is basically about presenting surplus or deficit for
the period of time in an government entity.
Entities total amount of revenue and expenditure for
the period is reported.
Financial Statements are presented to ensure
comparability both with the entity’s Financial
Statements of previous periods and with the
Financial Statements of other entities.
11. The objective of Financial Statements are to provide
information about the financial position, financial
performance and cash flows of an entity.
The objective of Financial Statements in the public
sector is to provide information useful for decision
making and mainly to demonstrate the
accountability of the entity.
12. It is,
Providing information about the sources, allocation, and
uses of financial resources
Providing information about how the entity financed its
activities and met its cash requirements
Providing information that is useful in evaluating the
entity’s ability to finance its activities and to meet its
liabilities and commitments
Providing information about the financial condition of
the entity and changes in it
13. Providing aggregate information useful in
evaluating the entity’s performance in terms of
service costs, efficiency, and accomplishments
Indicating whether resources were obtained and
used in accordance with the legally adopted budget
Indicating whether resources were obtained and
used in accordance with legal and contractual
requirements, including financial limits established
by appropriate legislative authorities
14. Accrued based Accounting System is more complex
than Cash based Accounting System
Errors can be occurred when reporting a large
volume of transactions
Asset valuation problems
15. Most government workers are narrow minded and
resist to get them updated in to new systems
Lack of knowledge & training
Attitude problems
16. Awareness step
Giving the most basic idea about the new system
Educational step
Providing a descriptive knowledge about the new system
Training step
Providing a practical knowledge about implementation of
the new system within the entity
17. Forming a separate teams, leaded by experts
Organizing sessions for provide a better
understanding about objectives of the circular alters the
accounting system
Holding a session knowledge about the
implementation of the new system in other countries not
only which are in developed but also in developing
countries such as Rwanda, Uganda, Algeria, South
Africa, Ghana, India,China
18. Created by;
Shakthi Fernando
Chandi Damayanthi
Janith Perera
BSc. Financial management(Special)-
Undergraduates
Sabaragamuwa University of Sri Lanka