Zim to achieve enhanced public accounting system

Source: Zim to achieve enhanced public accounting system | The Herald

Mr Owen Mavengere

Enacy Mapakame

The Institute of Chartered Accountants of Zimbabwe (ICAZ) says there is room for the country to achieve enhanced accountability, transparency and a viable public sector accounting system with the adoption and implementation of International Public Accounting Standards (IPSAS).

The institute is already complementing the Government in this regard as part of efforts to enhance transparency and accountability within public finance management.

According to ICAZ, increased accountability, ethics, and integrity comes through greater professionalism and training which in turn supports enhanced public financial management and, ultimately, economic growth and prosperity.

IPSAS are a set of accounting standards issued by the IPSAS board for use by public sector entities around the world in the preparation of financial statements and aims to improve the quality of general purpose financial reporting by public sector entities, leading to better informed assessments of the resource allocation decisions made by Governments.

Successful implementation of IPSAS allows the Government to adapt an accrual-based reporting framework to enhance transparency and financial accountability as opposed to a cash accounting-basis technique, which only reflects current expenditures against cash available and does not encourage full disclosure of liabilities and debtors.

In an interview, ICAZ acting chief executive officer, Mr Owen Mavengere, said the impetus is there from local authorities, parastatals and Government departments which created hope for an improved accounting system within public service.

“We are playing a part in this initiative to help them to migrate. Government departments, parastatals and local authorities are forthcoming and I believe we can achieve our goals.

“As long as there is support from the top and across to the bottom of the strata, we should be able to achieve the set objectives and have a vibrant public sector accounting system,” narrated Mr Mavengere.

Government departments, parastatals and local authorities have been criticised for poor public finance management which breed corrupt tendencies.

But in 2019, the Government set in motion a project to adopt IPSAS, through the IPSAS Implementation Plan, which is expected to be completed in 2026.

In support of this initiative, ICAZ stepped in by equipping the preparers with the competencies to interpret and implement the standards.

This is being done through the IPSAS Certification Course, a three-month course which gives preparers, reviewers and auditors an appreciation of the requirements of key IPSAS standards.

“The Institute will also be available to review IPSAS compliant financial statements and engage the Government to continuously improve in the implementation of these standards.

The Institute of Chartered Accountants of Zimbabwe (ICAZ) says there is room for the country to achieve enhanced accountability, transparenc

“Over and above that the Institute has introduced the ‘Public Sector Professional Accountant (Zimbabwe)’ which is a membership category leveraged against the CA qualification but with Public Sector specific competencies.

“This category is set to further strengthen public sector accountants in implementing IPSAS as training under this programme will be more rigorous,” he said.

ICAZ already undertook a pilot programme, whereby selected senior members in the public sector completed the course becoming the first public sector professional members of ICAZ in November 2021.

In line with this, ICAZ is also working with other Government arms to raise awareness to improve compliance with standards and procedures. Its members are available to assist the public sector for free.

Said Mr Mavengere: “This is in the public interest. We hope to see a situation where there is better accountability in Government finances in the same way you can look at listed companies to see how much profit they are making and how much has been used during a particular period.”