The Accounting Department is one of the key departments of the Ministry of Finance. It is responsible for implementing Iraq’s federal general budget, both operational and investment, according to the laws and regulations in force, most importantly the Federal Financial Management Law No. 6 of 2019.

The department manages the state’s financial resources and provides funding to all ministries and agencies that operate under the decentralized system, as well as to provincial treasuries under the centralized system, enabling them to execute their plans and programs within the limits of their annual budget allocations as defined by the federal budget laws.

It also supervises all financial procedures carried out by the accounting units in ministries and agencies by developing internal control systems, including both pre- and post-expenditure auditing, ensuring the requirements for their success, supervising implementation, and following up on the receipt and auditing of monthly and final accounts. Furthermore, it consolidates monthly and final accounts at the national level in line with the accounting system, which it seeks to develop according to international accounting rules and standards.

Main Tasks of the Accounting Department:

●  Organizing the supervision of cash liquidity for the state treasury to ensure its availability to both centrally and non-centrally funded spending units for the execution of their budgets.

●  Managing liquidity in a way that ensures the optimal use of available cash.

●  Monitoring liquidity as recorded in the monthly and final financial statements of the government accounting system.

●  Consolidating these statements into unified monthly and final accounts.

The Accounting Department is responsible for carrying out the following tasks:

It supervises the cash liquidity of the state treasury and how it is managed for the implementation of the state’s general budget, both operational and investment. It develops an appropriate accounting system to organize the financial aspects of its execution results and exercises accounting control over all financial transactions of the implementing units. It also unifies the accounting data of government sector units funded centrally and presents the results in accordance with accounting principles. Furthermore, it develops internal control systems for the management of public funds, ensures the requirements for their success, supervises their implementation, including pre- and post-expenditure auditing, and investigates financial violations assigned to the Ministry.

The department is headed by an employee with the title of Director General, who holds at least a bachelor’s degree and possesses relevant expertise and specialization, and is appointed in accordance with the law.

The Director General is assisted by two employees with the title of Deputy Director General, each of whom holds at least a bachelor’s degree and has relevant expertise and specialization.

Achievements of the Accounting Department’s Divisions for the Years 2020–2025

First: Achievements of the Cash Affairs Division

1- All ministries and state institutions funded centrally were financed in accordance with the federal budget of the state.
2- Payments were made for Iraq’s contributions to international and Arab organizations, associations, and institutions on behalf of all ministries and state entities.
3- External loans obtained by Iraq, along with their interest, were settled.
4- Funding was provided for contracts of all centrally funded state entities that required the opening of letters of credit, charged to both the investment and operational budget.
5- Grants and aid received by state institutions from donor countries and international organizations were collected.
6- Numerous revenues allocated to the Accounting Department were received and processed.
7- Official entities were provided with reports detailing financing under both the operational and investment budget.
 

As for the financing procedures, we clarify the following:

1- The Cash Affairs Division, through the financing bodies, organizes and opens a card prepared for the financing process of a ministry or department (an expenditure unit within the state’s general budget).
2- Each card, whether for the operational or investment budget, records the name of the ministry or department concerned with financing, the name of the bank where its current account is opened, and the account number.
3- Each card consists of two parts: in the upper part, the annual allocation from the budget (operational and investment) is recorded, along with all amendments made to the allocation during the year.
4- After the state’s general budget is ratified and approved by the Iraqi Parliament, the Budget Department provides a copy of this budget to the Cash Affairs Division. Based on the recorded allocations, the division’s authority carries out the financing and records the annual allocations on the card, monitoring them by comparing the annual allocation with the monthly financing to ensure that financing does not exceed the approved allocation.

Second: Achievements of the Cash Management Division

1- Monitoring balances of our current accounts opened with the Central Bank of Iraq and the Trade Bank of Iraq and continuously strengthening them.

2- Preparing and issuing financing letters for our accounts in both U.S. dollars and Iraqi dinars.

3- Continuously confirming current account balance verification letters for ministries and their affiliated entities for the year 2025.

4- Preparing confirmation letters for the refund of amounts related to letters of credit for ministries and their affiliated entities.

5- Reconciling our accounts (300600, 300351, and 300400), preparing the relevant accounting entries, and issuing the trial balance.

6- Monitoring statements of the Chinese loan accounts opened at the Central Bank of Iraq and reconciling them with both the Central Bank of Iraq and the Trade Bank of Iraq.

7- Responding to reports from the Federal Board of Supreme Audit regarding final accounts.

8- Reconciling oil revenue amounts with the Central Bank of Iraq and the State Oil Marketing Organization (SOMO).

9- Preparing the monthly report on actual oil revenues in U.S. dollars.

10- Preparing the weekly report on oil revenues from SOMO, including the oil price and exported quantities.  

Third: Achievements of the Studies and Follow-up Division

1- Responding to inquiries received by the division regarding the application of valid laws and decisions in coordination with the Legal Department and the Budget Department.

2- Nominating staff of the department for training courses held at the Financial and Accounting Training Center, in line with the training plan, as well as courses abroad and those offered by Al-Ibsar Company.

3- Issuing circulars to all ministries and non-ministerial entities regarding the accounting application of valid laws and decisions.

4- Opening current accounts for ministries and for the trust funds and salaries of entities whose accounts are tied to provincial treasuries.

5- Providing training for students of colleges and institutes (Accounting Departments) and trade high schools as part of summer training programs.

6- Responding to inquiries from departments regarding asset write-offs and debt write-offs.

7- Circulating orders for the seizure of movable and immovable assets received from the Legal Department to provincial treasuries.

8- Participating in committees related to preparing instructions.

9- Responding to inquiries from ministries, state institutions, and provincial treasuries concerning trust funds and stamp duties, in coordination with the Legal Department.

10- Issuing circulars and directives from the Minister’s Office and the Administrative and Financial Department and circulating them to provincial treasuries and departmental divisions for compliance.

11- Archiving the division’s files.

Fourth: Achievements of the Decentralized System Division

1- Auditing monthly trial balances of spending units applying the decentralized accounting system and continuously correcting accounting errors.

2- Responding to memoranda and letters from the Federal Board of Supreme Audit and the Ministry’s active authority.

3- Monitoring departments in the application of accounting systems and instructions and ensuring compliance.

4- Responding to inquiries from departments and preparing official correspondence.

5- Reconciling departments’ current accounts on a monthly basis.

6- Preparing letters regarding accounting errors found in trial balances sent by spending units.

7- Monitoring and reconciling annual account consolidation records for all units applying the decentralized system.

8- Cooperating with all other divisions of the department by responding to inquiries directed to the Decentralized System Division.

9- Recording revenue amounts on the financing form to enable revenue withdrawal.

10- Confirming to the Cash Affairs Division the refunded amounts included in trial balances after being informed by the relevant department of the account to which the refund belongs.

11- Transferring account balances of state entities detached from provinces to the relevant ministries.

12- Executing procedures to open current accounts for entities affiliated with the Ministry of Finance.

13- Completing financing forms for the trial balances mentioned in point (1) above.
 

Fifth: Achievements of the Treasury Accounts Audit Division 

1- Auditing and finalizing accounts of provincial treasury directorates (15 treasuries) for the first half of 2024 and their affiliated entities, and sending them to the Consolidation Division.

2- Auditing and finalizing final accounts for 2024 for all provinces (15 treasuries).

3- Responding to all reports from the Federal Board of Supreme Audit.

4- Responding to correspondence from the General Directorate of Real Estate Registration and its provincial branches.

5- Responding to correspondence from the General Commission for Taxes and its provincial branches.

6- Responding to correspondence from other departments regarding refunds of overpaid or erroneous amounts, particularly the Higher Judicial Council.

7- Issuing annual reports to all provincial treasuries after auditing their monthly accounts and addressing objections raised by the Treasury Audit Division to be resolved in the following year.

8- Incoming correspondence received by the division between 2/1/2025 and 30/6/2025 totaled 2,808 letters.

9- Outgoing correspondence issued between 2/1/2025 and 30/6/2025 totaled 306 letters.

10- Referral letters during the same period totaled 84.

11- Correspondence from the Budget Department received between 2/1/2025 and 30/6/2025 totaled 4,000 letters.

12- Monthly preparation of financing forms for provincial treasuries and sending them to the Cash Affairs Division.

13- Receiving submissions addressed to the Minister for approval and taking the necessary action accordingly.
 

Sixth: Achievements of the Investment Plan Division
1- Completing the audit of adjusted trial balances up to the final accounts for 2022 for departments submitted to us.

2- Auditing trial balances for the months of 2024 up to June 2025, including the final accounts of 2023 and 2024, covering the following:

- Reconciling analytical tables of final revenues and expenditures as well as intermediate accounts (advances, debtors, deposits, creditors).

- Verifying bank statements.

- Monitoring overspending of investment project expenditures against annual allocations for 2024.

- Reconciling the Accounting Department’s current account with financing letters. 

3- Auditing and reconciling some consolidation records up to 2023 with analytical tables and trial balances.

4- Posting accounting data in some consolidation records of our department.

5- Officially corresponding with departments regarding issues and inquiries related to trial balances.

6- Endorsing financing letters issued by our department and transfer letters received from the Ministry of Planning and the Budget Department.

7- Coordinating with the Consolidation Division regarding monthly and final trial balances.
8- Coordinating with departments regarding:

- Monthly and final accounts, especially with reference to our circular No. 6700 of 2/5/2021 concerning trust funds related to project laws.

- Final accounts, particularly with reference to the Director General’s Office circular No. 14546 of 30/5/2024 concerning financing remaining allocations from 2023.

- Monthly accounts with reference to our circular No. 12351 of 20/7/2021 concerning the revolving trust funds monitoring form.

- Supplementing circulars in points (A and B) with circular No. 1360 of 22/1/2024 regarding the mechanism for financing annual allocations for 2023 deposited in the investment expenditure current account in January 2024.

9- Submitting several memoranda to the Minister of Finance and the Director General concerning trust fund transactions, obtaining approval, and disbursing all entitlements.

10- Preparing memoranda and issuing letters on accounting treatments for amounts recorded as final revenue after initial study, in order to return them to their rightful parties, based on our circular No. 2200 of 9/2/2022.

11- Processing, printing, and editing daily correspondence of the division and responding to incoming inquiries.

12- Recording all outgoing and incoming correspondence in the registry, archiving them electronically, and filing documents in the general file for 2024 up to June 2025.
 

Seventh: Achievements of the Accounts Consolidation Division

1- Issuing final accounts for 2020 and 2021 and submitting them to the Federal Board of Supreme Audit / Financing and Distribution Audit Division.

2- Issuing state accounts for both operational and investment budgets and publishing them on the Ministry of Finance’s website under our delegated authority.

3- Daily entry of transfer orders from the Budget Department to extract revised allocations.

4- Responding to correspondence received from official state institutions and higher authorities requesting financial data.

5- Providing the Council of Ministers and the Parliament with financial data every four months, in accordance with Chapter V (Oversight and Audit) of the Federal Financial Management Law No. 6 of 2019, Article 34(1)(b).

6- Printing trial balance statements for previous or current periods upon request from the auditing divisions of our department, based on internal memoranda submitted by their directors.

7- Providing the Central Bank and the Economic Department with financial data on a monthly basis.
 

Eighth: Achievements of the Field Audit Division

Committees:
1- Participation in valuation committees of ministries and their affiliated entities.

2- Participation in investigative committees.

3- Membership in the Ministry of Finance’s Committee on Compensation of the Injured.

4- Formation of audit committees for auditing the accounts of ministries and departments.

5- Membership in Ministerial Order Committee (10/S) formed at the Ministry of Justice.

6- Membership in the Board of Directors of the Environmental Protection Fund.

7- Chairmanship of the Permanent Committee for the Revaluation of Fixed Assets in economic units.

8- Participation in the subcommittee formed in the Accounting Department to implement the National Anti-Corruption Strategy.

9- Participation in the subcommittee formed in the Accounting Department for Transparency and Protection of Public Funds.

10- Membership in the Faw Refinery Investment Committee.

Audit/Expenditure:

Completing financing procedures for ministries and self-financed companies before and after disbursement according to incoming transactions.
 

Follow-up:
1- Monitoring audit reports from the Federal Board of Supreme Audit and forwarding them to the relevant divisions based on jurisdiction.

2- Daily monitoring of incoming correspondence, archiving documents, and entering data into the computer system for record-keeping.

Ninth: Achievements of the Human Resources Division
Finalizing records for degree recognition, allowances, promotions, and title changes for the Accounting Department and provincial treasuries.

Continuing to update the electronic Human Resources System in line with work requirements.

Ongoing updates to the employee registration system.
 

Tenth: Achievements of the Electronic Computing Division

1- Updating Oracle-based systems (Cash Financing, Accounts Consolidation, Cash Accounts, DFI, Allocations) and adding reports as needed.

2- Linking the Revenue Collection Division with the Cash Accounts Division through a dashboard displaying Central Bank notifications; also linking the Unified Treasury Account Subdivision with the Cash Accounts Division via a dashboard to display notifications without requiring manual extraction.

3- Monitoring systems in other divisions using Visual FoxPro (incoming/outgoing correspondence system considered the beginning of e-government, allocation and transfer system, warehouse system, Account 70009, Account 300349), while adding and updating reports as needed.

4- Maintaining all computers and peripherals (printers, security devices, etc.) in departmental divisions, and monitoring internet and intranet networks with the IT Department.

5- Documenting all requests from divisions for supplies and ensuring their provision as required.

6- Responding to official correspondence, following up, and archiving all documents daily in the incoming/outgoing correspondence system, which serves as the foundation for e-government data.

7- Following up on all technical purchases, ensuring supply of devices and spare parts, and recording them in the warehouse system of the Computing Division.
 

Eleventh: Achievements of the Treasury Services Division

1- Securing accounting records and forms for provincial treasury directorates through purchases from Al-Sabah newspaper press.

2- Securing stationery for our department by receiving supplies from the Administrative Department’s warehouse.

3- Following up on maintenance of furniture, electrical appliances, and copying machines with the Engineering Division and the Computing Division of the Administrative Department.

4- Monitoring fair pricing of purchases for provincial treasury directorates.
 

Twelfth: Achievements of the Cash Accounts Division
 

1- Payments Subdivision: 

●  Receiving financing letters from the Cash Affairs Division for funding expenditure units of the operational and investment budgets, transferring amounts through the RTGS system in cooperation with the Central Bank and other banks, and extracting electronic notifications for these amounts in both dinar and dollar. These notifications are then forwarded to the Audit and Expenditure Subdivision and the Foreign Currency Subdivision.

●  Receiving revenue notifications for amounts credited to the Accounting Department’s account (the general treasury) at the end of each day and delivering them to the Revenues Subdivision via RTGS and ACH systems.
 

2- Audit and Account Classification Subdivision:

This subdivision receives copies of financing letters from the Cash Affairs Division and matches them with electronic notifications from the Payments Subdivision. It then manually records accounting entries, audits them, and posts them electronically using a designated program. The entries are reconciled daily with the Central Bank of Iraq’s records for investment plan accounts, payroll current accounts (Unified Treasury Account), operational expenditure accounts (Unified Treasury Account), and other expenses.

3- Expenditure Classification Subdivision (Foreign Currency):

– Receiving a copy of the payment letters issued by the Cash Affairs Division along with a copy of the electronic notification from the Payments Subdivision, recording the accounting entries manually, then posting them into the electronic system using the designated program, and reconciling them with the Central Bank of Iraq statement received from the Payments Subdivision. Current accounts also exist with the Central Bank and the Trade Bank of Iraq.

– It also receives notifications of revenues realized in foreign currency and records the necessary entries as described above, in order to reconcile revenues at the end of each day.
 

4- Revenues Subdivision: Recording realized revenues based on electronic notifications. 

The subdivision carries out the related accounting entries manually, according to the type of revenue—whether it is the treasury’s share of profits from public companies, stamp duties, fines, or confiscated funds—each classified under its specific revenue category. These entries are then posted into the electronic system using the designated program and reconciled at the end of each day with the Central Bank of Iraq statements received from the Payments Subdivision.
 

5- Electronic Computing Subdivision for Cash Accounts

It monitors the process of entering the accounting entries previously posted into the electronic system, ensures their accuracy and proper classification, and then reconciles them with the Central Bank statement of account activity from the beginning of each month until the end. It also verifies the opening and closing balances of each bank account on a monthly basis. 

– Extracting the trial balance, reconciling it, and sending it electronically to the Accounts Consolidation Division.
– Preparing tables of realized revenues, including oil revenues, customs revenues, tax revenues, miscellaneous revenues, licensing fees, and others.
– Preparing tables of amounts allocated for repayment of external and internal debt, as well as interest accrued on external and internal loans, in addition to other required tables.
– Preparing and extracting the final trial balance of the Accounting Department and sending it to the Accounts Consolidation Division for the issuance of the final account of the Republic of Iraq.
– Opening a special account for tax deposits of the General Commission for Taxes in both Iraqi dinars and U.S. dollars at the Central Bank of Iraq, as well as a special account for non-oil revenues of the Kurdistan Region, and reconciling both accounts on a monthly basis.

6- Provincial Treasuries and Financial Directorates in Districts and Subdistricts

Each treasury is responsible for collection, disbursement, accounting organization, and monitoring of financial transactions for the accounting units whose accounts are linked to the respective treasury.

New Internal Regulation