A CCOUNTING experts have implored the public sector to fast-track the implementation of the International Public Sector Accounting Standards (IPSAS) in line with international benchmarks.
For years, the Auditor-General’s Office has identified several governance gaps that have led to massive proliferation of public funds in the public sector.
Speaking at the 8th Public Sector Convention hosted by the Institute of Chartered Accountants of Zimbabwe (ICAZ) in Gweru yesterday, Rwanda’s Ministry of Finance IPSAS consultant Amon Dhliwayo said international and local expertise were needed for the shift.
The convention is running under the theme, Future Ready: Cultivating Leadership and Professional Excellence for a Sustainable Public Sector.
“This presentation will focus on Afro-Resource Implementation, specifically Accrual Accounting Implementation (APOA Ipsos). We will break down the complexity and discuss the recommended approach to implementing resources in a structured and consistent manner,” Dhliwayo said.
“This will enable governments to produce resource-compliant financial statements within agreed timelines, in line with standards and in the least costly manner. We need to implement IPSOS in the least costly and timely manner because we are obtaining finance from institutions like the World Bank, African Development Bank and IMF [International Monetary Fund] to implement IPSAS.”
He said government needed to establish project governance structures to identify, compile data and assign values to noncurrent assets as it shifted towards the implementation of IPSAS.
“The primary objective of governments is to deliver goods and services to the public without generating profit in non-market transactions and reducing distributed income and wealth,” Dhliwayo said.
“Public sector entities need to take transfers and borrow to finance these objectives. Hence, governments must generate balances showing stocks of assets and liabilities and related revenue and expense flows.”
Current government balances do not show all assets and liabilities and associated flows because some governments reported on a cash basis, while others use modified accrual methods.
However, there is a shift towards accrual accounting, with 30% of governments already reporting all assets on the balance sheet.
“Accrual implementation involves identifying, registering, valuing and reporting all assets and liabilities for the first time. This includes legacy assets and liabilities,” Dhliwayo said.
“After getting the opening balance sheet, new acquisitions and liabilities must be accounted for on an accrual basis.”
He said IPSAS also forced governments to account for its assets both locally and abroad as part of the requirements, emphasising on preparation and planning.
He added that the Auditor-General’s Office needed to be involved throughout the process.
ICAZ president Brice Musendo said the institution was committed to professionalising the public sector and enhancing governance, audits and skills to improve operational efficiencies.
“Last year, ICAZ of Zimbabwe successfully launched its seventh public sector convention, themed Sustaining Economic Growth through Accountable Resource Management.
“This significant event marked a crucial step towards professionalising the public sector and enhancing governance, audits and relevant skills to improve operational efficiencies. The convention’s focus on accountability and effective governance aims to promote a sustainable and high-quality services sector,” Musendo said.
He said ICAZ aimed to collaborate with the government to support a holistic approach that integrated skills development, ethical governance and sustainable integration.
“ICAZ launched the Public Sector Professional Accountants of Zimbabwe (PSPAZ) programme two years ago, with 31 members to date and 42 eligible for membership,” Musendo said.
“Aligning with the government’s adoption of International Public Sector Accounting Standards, we have 256 students registered under the provincial level 1 and level 2 for the three-year programme, and 44 students under the accelerated Public Sector Professional Accountants of Zimbabwe program for one year.”
The PSPAZ programme aims to improve reporting and enhance trust, accountability, transparency and the quality of decision-making by 2025, when the government aims to be IPSAS-compliant.