Dr. Hughes sees IPSAS as one the strategies to improve public financial management. He also recommended that cash management should be separate from budgetary controls, that the Treasury Single Account (TSA) be used and Integrated Financial Management Information Systems (IFMIS) adopted by governments.
Dr. Hughes emphasized the need for improved education in public financial management. He described the benefits of accrual accounting in government. These benefits include:
- Better accountability and better decisions
- More meaningful understanding of costs for goods and services
- Basis for performance management
12 steps for transition to IPSAS was described by Dr. Hughes:
- Develop organizational transition plan and coordinate with auditors
- Train staff
- Assess the information system changes required
- Prepare Policy and Procedures Manual for approved IPSAS policies
- Pilot test IPSAS policies and procedures in the new/upgraded information system
- Prepare IPSAS-compliant opening and closing Statements of Financial Position.
- Prepare proforma Statement of Financial Performance.
- Prepare proforma Statement of Net Assets/Equity.
- Prepare proforma Statement of Cash Flows
- Prepare proforma Statement of Comparison of Budget to Actual Amounts
- Prepare proforma IPSAS-complaint statements for controlled entities
- Prepare proforma Consolidated Statements
Dr. Hughes suggests that IPSAS may tackle public private partnerships, fiscal sustainability and social security reporting standards. He showed the difference in size between the cash and accrual version of IPSAS.