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e-Dirham system transformation: a world-class achievement

| 29/07/2020

H.E. Saeed Rashid Al Yateem, Assistant Undersecretary of the Resources and Budget Sector at MoF

The e-Dirham system is a smart technological achievement for the Ministry of Finance (MoF) that provides leading-edge solutions. It is an integrated system that employs the latest technologies to deliver a high level of security to deliver smart electronic payment services that are easy and flexible. The system provides integrated digital payment gateways to collect fees for federal government revenue services, thereby improving public service delivery.

The e-Dirham system transformation strategy plays an important role in strengthening the bonds of cooperation between the public and private sectors, thus enhancing the flexibility and sustainability of revenue flow for federal government service fees and financial settlements. The United Arab Emirates has established itself as a role model for governments as it enhances its services in line with the goals of the national agenda for the UAE Vision 2021.

The Ministry of Finance continues its efforts to further improve its services to keep pace with the digital transformation of financial services, in line with its strategic vision to become the leading government entity in adopting best practices in the area. The ministry’s digital transformation also aims to improve customer satisfaction, enabling them to transact securely, thus enhancing the nation’s competitiveness on global competitive indices.

The ministry continuously cooperates with federal and local authorities to enhance integration and coordination when it comes to fiscal policy services, sustainable development and government work across the nation.

Accrual Accounting Programme - an improvement to public financial management in the UAE

| 30/06/2020

Financial Planning
H.E. Mariam Mohammad Al Amiri, Assistant Undersecretary for the Management of Financial Resources

The UAE proactively looks ahead and innovates to map out future solutions that are in line with the wise leadership's vision to make it the best country in the world by the UAE Centennial 2071.

As part of this commitment to lay the financial foundations for financial sustainability in the country, the Ministry of Finance (MoF) has launched the first phase of transition to accrual accounting for government entities. This is a critical step that enhances efficiency of the federal budget, and improves public financial management in the country. The transition to accrual accounting also enables MoF to achieve its strategic objectives. MoF aims to improve financial planning of the country’s budget in accordance with best international practices. The ministry has the resources, and the support required, to ensure the success of the project, and has launched a programme to transition federal government's accounting from a modified cash basis to an accrual accounting framework.

The project was launched during the work-from-home period, which also demonstrates MoF’s ability to manage the project despite current challenges. Teams across the ministry continue to devise solutions to increase productivity and enhance the federal financial system, thus reaffirming MoF’s excellence on the global stage.

The integrated financial system that allows the transition to accrual accounting has been launched, through which all transactions, balances and closings are recorded on June 1, 2020, and the opening balances of all federal entities are prepared according to the approved transformation plan. Furthermore, all transactions, balances and accounts are converted based on the accrual principle, in addition to preparing comprehensive assets records for federal entities, along with regular training for federal entities. It will also set guidelines for policies to apply accounting on an accrual basis, training materials for accounting standards for the federal government, and a guide to standardise financial statements. An update of the approved accounting standards guide is also underway.

The project allows for better evaluation of the government’s performance in terms of the services’ costs, effectiveness, accomplishments; and it portrays a clearer overview of the management of government resources. Additionally, it provides a better benchmark for the resource-use options, the performance of federal government ministries in terms of financial standing and cash flow. It also enables a projection of future financial statements, which in turn allows for better benchmarking.

The transition to accrual accounting will have a positive impact on the UAE’s economy , as it will establish an effective public financial administration in accordance with best practices in accounting and standardising reports. This will enable the optimal use of resources, boost transparency, accountability and will provide a comprehensive overview of the financial standing of the UAE. Finally, it will also help record revenues and expenses at the appropriate time, and provide accurate information to devise future plans and issue decisions based on robust financial information.

Page last updated : 04/08/2020 8:08 AM