Accountability in the public sector

The basic knowledge recommended in this recommended course unit is associated with the analysis of accounting data and critical judgment in interpreting accounting information.

Teaching method for the development of skills using computerized teaching material and other active teaching techniques that will seek to be incorporated in the classroom, where the use of e-learning appears as the virtual learning method and students will interact not only with the teacher, but also with each other.

The SNC-AP presents new accounting policies and accounting principles established in the conceptual framework and recommended by the NCP, which will imply some transition adjustments to be reflected in the initial financial statements, with a consequent impact on the financial statements

 Considered fundamental components of accountability, this curricular unit’s main objective is to present the main individual financial statements of the annual report of a public entity, within the scope of the SNC-AP.

Seeking to provide theoretical and practical content on the subject of public reporting, this course aims to provide students with a theoretical and practical component that is particularly important in the accountability of entities subordinate to the SNC-AP.

 Continuing to include three accounting subsystems: budget accounting, financial accounting and management accounting, the SNC-AP brings some innovations in the recognition and measurement of transactions, which must be retained. In turn, the financial reporting of a public entity subject to the general regime of the SNC-AP necessarily involves information from these three subsystems, being called general purpose financial reporting.

Thus, at the end of this course, students should be able to prepare the complete set of Financial Statements:

Budget Accounting System

Statement of budget execution of revenue

Statement of expenditure budget execution

Statement of budget performance

Demonstration of the execution of the Multi-Year Investment Plan (PPI)

Annex to the budget statements

Financial Accounting System

Balance

Income Statement by Nature

Statement of Changes in Equity

Cash Flow Statement

Annex to the financial statements

Management Accounting System

Income statement by functions

Income statement for products sold or services provided in the period

Statement of costs by activity, including information on sub-activity and apportionment bases

Demonstration of production expenses for final products and services, including deviations

Statement of environmental income and expenses

Statement of non-incorporated general income and expenses

Account Consolidation

Consolidation Perimeter

Group Perimeter vs Financial Consolidation Perimeter

Accounting for Interests in Other Entities

Measurement, recognition and consolidation methods

Introduction

1 – The rendering of accounts of entities subordinate to the SNC-AP

1.1 – Public Entities subject to Reporting

1.2 – Framework for Accountability in the Public Sector

1.3 – Basis for Presentation of Financial Statements

1.4 – General Purpose Financial Reporting of Public Entities in Portugal

1.4.1 – General Purpose Financial Reporting

1.4.2 – Financial Reporting Information

1.5 – Financial reporting, transparency and accountability

1.6 – Audit of the General Purpose Financial Report

2 – Financial Accounting

2.1 – Financial Statements in accordance with NCP 1 – Structure and Content

2.2 – Composition of the set of financial statements

2.2.1 – The Balance Sheet

2.2.2 – Income Statement by Nature

2.2.3 – The Statement of Changes in Equity

2.2.4 – The Cash Flow Statement

2.2.5 – Attachment to the Financial Statements

2.3 – Accounting Policies, Changes in Estimates and Errors

2.3.1 – Changes in Accounting Policies

2.3.2 – Changes in Accounting Estimates

2.3.3 – Errors

2.4 – Provisions, Contingent Liabilities and Contingent Assets

2.4.1 – Relation between Provisions and Liabilities and Contingent Assets

2.4.2 – Recognition of Provisions and Disclosure of Liabilities and Contingent Assets

2.4.3 – Measurement, Refunds & Changes to Provisions

2.4.4 – Restructurings

2.5 – Effects of Changes in Exchange Rates

2.5.1 – Fundamental Concepts

2.5.2 – Reporting Transactions in Foreign Currency in Functional Currency

2.5.3 – Use of a Presentation Currency Different from the Functional Currency

2.6 – Events After the Reporting Date

2.7 – Related Party Disclosures

2.8 – Segment reporting

3 – Budget Accounting

 3.1 – NCP 26 – Accounting and budget reporting

3.2 – Closing of Budget Accounting

3.3 – Budget Consolidation – Methods and Procedures

3.4 – Budget Report

3.4.1 – Purpose of Budget Statements

3.4.2 – Components of the Budget Statements

3.4.3 – Attachment to the Budget Statements

4 – Management Accounting

  4.1 – Management Accounting in Public Administration – NCP 27

4.2 – Closing Process in Management Accounting

4.3 – Disclosures

4.4 – Financial Statements in accordance with NCP 27 – Structure and Content

4.4.1 – Results by functions

4.4.2 – Results for products sold or services provided in the period

4.4.3 – Costs per activities;

4.4.4 – Production expenses for final products and services;

4.4.5 – Environmental income and expenses;

5 – Consolidation of Accounts – Financial consolidation perimeter

5.1- Legal Framework

5.2 – SNC-AP Consolidation Perimeter

5.3 – Group Perimeter vs Consolidation Perimeter – Financial Nature

5.3.1 – Presumption of Control Public Groups

5.3.1.1 – The Power

5.3.1.2 Voting Rights

5.3.1.3 – Economic dependency

5.3.1.4 – Potential voting rights

5.3.2 – Presumption of Control by Local Authorities

5.4 – Accounting for Interests in other entities

5.5 – Measurement, recognition and consolidation methods

5.5.1 – Measurement, recognition and consolidation methods – Exclusive Control

5.5.1.1 – Consolidation Procedures

5.5.1.2 – Non-controlling interests

5.5.1.3 – Loss of Control

5.5.2 – Measurement, recognition and consolidation methods – Significant Influence – NCP 23 – Investments in Associates and Joint Ventures

5.5.3 – Measurement, recognition and consolidation methods – No significant influence – NCP 18 – Financial Instruments

5.5.3.1 – Recognition of Financial Assets and Liabilities and Equity Instruments

5.5.3.3 – Impairment of Financial Assets

5.5.3.3.1 – Recognition of Financial Asset Impairments

5.5.3.3.2 – Measurement of Impairment of Financial Assets

5.5.3.3.3 – Reversal of Impairment of Financial Assets

5.5.3.4 – Derecognition of Financial Assets and Liabilities

5.5.3.5 – Compound & Derivative Financial Instruments

5.5.3.6 – Coverage Accounting

5.5.3.6.1 – Concepts Associated with Coverage Accounting

5.5.3.6.2 – Coverage accounting

5.5.3.6.3 – Coverage of fixed interest rate risk or price risk of assets held or covered by a firm commitment

5.5.3.6.4 – Hedging the risk of interest rate variability, exchange rate risk, price risk of a highly probable future transaction or exchange rate risk on net investment in a foreign operating unit.

5.5.4 – Measurement, recognition and consolidation methods – No significant influence – NCP 21 – Separate Financial Statements

5.5.5 – Methods for measuring, recognizing and consolidating NCP 24 – Joint Agreements

5.5.5.1 – Principles of financial reporting when the entity has interests in jointly controlled arrangements

5.5.5.2 – Recognition and Measurement Methods

5.5.5.3 – Separate Financial Statements

6 – Consolidation of Accounts – Consolidation perimeter of a budgetary nature

6.1 – Consolidation methods

6.2 – Consolidation Procedures

NAO

Fundamental Bibliography

Silva, R., Góis, C., Marques, M.C. (2021). SNC-AP – Prestação de Contas na Administração Pública. Coimbra: Almedina.

Silva, R. (2022). Manual de Apoio à Disciplina de Prestação de Contas na Administração Pública – Elaboração Própria.

Apontamentos de apoio à aula

 Comité de Normalização Contabilística Pública (CNCP) (2017). Manual de implementação do SNC-AP 2.ª versão. Lisboa: CNC.

 Tribunal de Contas (2016). Manual De Auditoria – Princípios Fundamentais. Lisboa: Tribunal de Contas.

 Tribunal de Contas (2019). Resolução 3/2019 – Prestação de contas relativas ao ano de 2019 e gerências partidas de 2020. Lisboa: Tribunal de Contas.

 Tribunal de Contas (2019). Instrução 1/2019 – Prestação de contas das entidades sujeitas à jurisdição e aos poderes de controlo do Tribunal de Contas. Lisboa: Tribunal de Contas.

 Complementary Bibliography

 Decreto-Lei n.º 192/2015, de 11 de setembro. Diário da República nº 178 – I Série.

 Decreto-Lei n.º 85/2016, de 21 de dezembro. Diário da República nº 243 – I Série.

Decreto-Lei n.º 410/89, de 21 de novembro. Diário da República nº 268 – I Série – 1.º Suplemento.

 Decreto-Lei n.º 47/77, de 07 de fevereiro – Diário da República n.º 31 – I Série – 2.º Suplemento.

Decreto-Lei n.º 44/99, de 12 de fevereiro – Diário da República n.º 36 – I Série – A.

Decreto-Lei n.º 158/2009, de 13 de julho – Diário da República n.º 313 – I Série.

Ordem dos Contabilistas Certificados (2021).  Contabilidade de Gestão no SNC-AP (NPC 27). Lisboa: OCC

Ordem dos Contabilistas Certificados (2020).  Casos Práticos – SNC-AP. Lisboa: OCC.

Ordem dos Contabilistas Certificados (2021).  Elaboração e preparação das demonstrações financeiras individuais (SNC-AP). Lisboa: OCC.

Ordem dos Contabilistas Certificados (2021).  Contabilidade e relato orçamental no SNC-AP (Norma 26) Lisboa: OCC.

Ordem dos Contabilistas Certificados (2019).  Contabilidade e relato orçamental no SNC-AP (Norma 26) Lisboa: OCC.

Portaria n.º 218/2016, de 09 de agosto. Diário da República n.º 152, I Série.

Resolução 3/2019, de 23 de janeiro. Diário da República n.º 16, II Série – D.