Turn IPSAS compliance into better public services – Forum

Ghana has been urged to build on its achievement of full compliance with applicable International Public Sector Accounting Standards (IPSAS) and ensure that the reforms translate into better management of public funds and improved public services.

The country achieved full compliance with applicable IPSAS in 2023, a milestone described as an important step towards improving the quality of public financial reporting and strengthening financial management.

However, participants at a Public Financial Management (PFM) Forum in Accra said compliance with accounting standards should not be treated as the end of the reform process.

They said the focus should now shift to ensuring that the financial information generated was reliable, useful and capable of supporting planning, budgeting, asset management and policy decisions.

The Chairman of the International Public Sector Accounting Standards Board (IPSASB), Thomas Müller-Marqués Berger, commended Ghana for its progress, particularly its implementation of accrual-based IPSAS.

He praised the professionalism demonstrated in the reform process, noting that Ghana began its transition to accrual accounting in 2007 and formally announced the move in 2014.

The Vice Chairperson of the African Association of Accountants General (AAAG) and Accountant General of Tanzania, CPA Leonard Mkunde, said credible financial information was critical to effective public financial management.

He urged countries to pay greater attention to the quality of financial data, identifying comprehensive asset registers and reconciled balances as important areas requiring improvement.

Mr Mkunde said financial statements should not be produced merely to meet reporting requirements but should be trusted and used to guide decisions.

The forum also stressed the need for Ghana and other African countries to invest in the professionals responsible for managing public financial systems.

The Minister of Foreign Affairs, Samuel Okudzeto Ablakwa, called for greater investment in accountants, auditors, economists, public administrators and information technology specialists.

He said skilled professionals were essential to making financial management reforms work effectively.

Mr Ablakwa said the real value of public financial management should ultimately be reflected in the lives of citizens.

He said Ghana’s limited public resources should translate into better schools, stronger healthcare, improved infrastructure, jobs and greater opportunities.

The President of the Institute of Chartered Accountants, Mr Augustine Addo, also called for stronger professional capacity, saying African countries needed the skills to address issues such as asset valuation, consolidation, technology and the reporting of natural resources.

The Director of Finance of the African Union Commission, Mrs Edith Akorfa Lumor, said public financial management and accountability were central to good governance and should not be treated merely as technical accounting matters.

The forum also encouraged African countries to share experiences and learn from one another.

Mr Ablakwa said countries should not continue to tackle similar public financial management challenges in isolation, and called for greater cooperation and knowledge-sharing across the continent.

BY ENOCH NTIAMOAH SIAW

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