Significant progress made in IPSAS implementation

TENDAIISHE NYAMUKUNDA

Significant progress has been made in the implementation of the new accounting standard, the International Public Sector Accounting Standards (IPSAS), as part of efforts to improve efficiency, transparency and accountability in the public sector, Finance, Economic Development and Investment Promotion Minister, Professor  Mthuli Ncube.

Central government, local authorities and State entities are expected to migrate to the accrual based IPSAS from the traditional cash-based accounting system by 2025.

“Significant progress has been recorded in the implementation of the International Public Sector Accounting Standards (IPSAS),” Professor Ncube said.

The cash-basis accounting system recognises transactions between government, local authorities and their clients only when the money is paid.

But, the accrual-based IPSAS, which recognise those transactions within the time period that they occur, is part of a wider public finance management (PFM) reform in the public sector.

The new accounting system is expected to contribute to better use of public funds. It will also allow better public service performance.

Government has roped in the Institute of Chartered Accountants (ICAZ) and the Public Accountants and Auditors Board (PAAB) to help in the migration from cash-basis accounting system to the more transparent accruals system.

Professor Ncube said the new reporting framework would go a long way in making sure that “we can account for government resources better, this will go a long way in us mobilising domestic resources, what is called domestic resource mobilisation, will go a long way in assuring transparency and accountability at all government levels”.

Zimbabwe announced its commitment to migrate to the principle based IPSAS reporting framework from the rule-based accounting as from January 1, 2018.

Professor Ncube said the accrual based IPSAS reporting framework would be supportive of Government efforts to achieve the desired results-based performance through efficient utilisation of resources and, timely and transparent reporting.

The reform is part of ongoing efforts to enhance and strengthen the Public Finance Management system, he said.