Annual Report 2010 - Ministry of Finance and Planning

7 | FINANCIAL STATEMENTSFinancial Statements 2010Financial Statements of the Government of the DemocraticSocialist Republic of Sri Lanka for the year ended 31 stDecember 2010 which mainly comprises of statements ofFinancial Performance and Cash Flows for the year 2010,Financial Position as at 31 st December 2010, an analysis oftotal expenditure in the financial performance along withthe report of the Auditor General, are presented in thisdocument.These Statements have constantly adopted the reportingformats introduced with the Financial Statements preparedfor the year 2005 aiming at shifting to accrual accountingand prepared in full compliance with generally acceptedaccounting principles and practices, guided by the Sri LankaAccounting Standards (SLAS) and International PublicSector Accounting Standards (IPSAS). This demonstratesthe commitment of the Government in transition towardspreparing and presenting its Financial Statements on thebasis of accrual accounting as against the legacy practiceof cash based accounting. The report formats enable anadvanced presentation of the Financial Performance inconsistent with the classification and presentation of theAnnual Budget that has been approved by the Parliamentwhile facilitating easy comparison.Since 2004, the Government has been making a concertedeffort to implement an accrual accounting regime.Accordingly, documenting process of information to bedisclosed outside the accounting system pertaining to assetmanagement, commitments and liabilities was designed.The relevant information on movable assets acquired after01-01-2004 are disclosed in Financial Statements untilaccrual accounting principles are fully adopted.Year 2010 is a special fiscal year for the Government Budgetdue to implementation of budgetary provision in threestages. During the first four months, approval was grantedon a Vote-on-Account approved by the Parliament.For the next three months, provisions were approvedunder the article 150 (3) of the Constitution. Finally, thecomplete budget was approved by the Parliament in Julyto cover the entire fiscal year 2010.These financial statements encompass the financialoperations of twenty special spending units, fortyfive Government Ministries, ninety two GovernmentDepartments and twenty five District Secretariats/Kachcheris in their performance utilizing the financialresources allocated during the year 2010. Moreover,basic information pertaining to the financial resourcesallocated by the Central Government in the year 2010to nine Provincial Councils and Public Enterprises whichcomprise thirty three Commercial Public Corporationsand Statutory Boards involved in activities in regulatory,manpower development, infrastructure development etc.,has also been disclosed in these statements.In line with the vision of the Department of StateAccounts to be the Centre for Excellence in GovernmentFinancial Information and in discharging its reportingresponsibility of the public financial accountabilityby presenting the Annual Financial Statements of theGovernment to the Parliament, it has warranted theDepartment to assure the high quality of informationgenerated and furnished. For this purpose, theDepartment has implemented a computerized informationsystem and well designed process with all the necessaryinternal controls, checks and balances and requiredlevel of supervision in all stages of data compilation,processing, reporting and storage to maintain theintegrity, accuracy and completeness of the data collectedand information produced.308