The Accountant General published the Financial Statements of the Government of Israel for 2012
The income from the Taxation of Gas and Oil Profits Law (the Sheshinski Law) as of December 31, 2012 totaled NIS 235 million
The Ministry of Finance Accountant General, Michal Abadi-Bouiangui CPA, today published the financial statements of the Government of Israel in 2012. The statements provide the government, the Knesset and the general public with a comprehensive picture of the performance during this fiscal year. Their objective is to provide the general public with the appropriate transparency and the compliance accountability regarding the manner in which the executive branch manages all of the public resources with which it is entrusted.
Each year the Israeli government presents the State Comptroller and the Speaker of the Knesset with a financial reporting of its activities. The Financial Statements were signed on May 30, 2013 by the Accountant General, the person responsible for the preparation of the consolidated financial statements of the Government of Israel, and the Chief Accountant, Uzi Sher CPA, the person who prepared the statements. The statements were forwarded to the Minister of Finance, Yair Lapid, Speaker of the Knesset, Yuli Edelstein, and the State Comptroller, Judge (ret.) Yosef Shapira.
For the first time, there is a chapter presenting the activities of the government - government agencies, support units, government companies and the National Insurance Institute. The activities of the government are divided into four main areas - governance and administration, society, infrastructure and security. This presentation provides an additional angle in terms of assets and the results of government activity. Unlike previous years, for the first time the financial statements contain data audited by the National Insurance Institute. The data was included following the publication of the audited financial statement in April by the National Insurance Institute.
The statement disclosed the accrual of NIS 235 million in the levy on oil profits fund (Sheshinski Law) as of December 31, 2012. In addition, for the second year running, the statements disclosed the estimated value of land assets held by the government and the expected royalties from natural resources.
The statements include a statement of assets and liabilities, a statement of income and expenditure performance, a statement of changes in net assets and notes to the financial statements. The statements also include a brief financial analysis and the national budget performance report for 2012.
The Account General's Division continues to promote major reforms in the government's financial reporting
methods so as to improve their quality and reliability as well as to increase the relevance of the presented information. Reliable financial statements are a key source of information about the state’s assets and liabilities. The statements serve as a basis for the long-term improvement of various significant processes.
The Accountant General, Michal Abadi-Bouiangui: "Further to the significant progress that has taken place in the financial reporting of the government of Israel and the substantial reform implemented in government accounting, the content of the consolidated financial statements has been expanded. The purpose of the statements is to provide financial information that will be useful to a diverse range of users for evaluation and decision-making. Despite the great improvement in the quality of the information, we are still far from the goal of reports that reflect the overall financial situation and the general economic activity of the country and its bodies. The primary deficiency is in the area of state assets."
The Chief Accountant of the Accountant General Division, Uzi Sher CPA, prepared the statements: "Presenting the government's financial position and the results of its activities in a united format provides the users of the statements with information about the government’s activities, in accordance with international financial reporting standards."
The statements are prepared in accordance with accounting standards based on international accounting standards. The statements include financial data audited by external auditors in respect of 51 government departments and support units, the budget of which constitutes 77% of the expense budget for all government ministries.
Source: Israel Ministry of Finance