The Controller and Accountant General in a pose with the chief directors after the opening session of the workshop
CHIEF DIRECTORS from Government’s Ministries have been sensitized on the implementation of the International Public Sector Accounting Standards (IPSASs).
Ghana adopted IPSAS in 2014 and the Controller and Accountant-General Department (CAGD) was assigned the lead responsibility over its implementation process which is expected to come to an by 2022.
Speaking at the sensitization workshop held on Tuesday, June 4, in Accra by the CAGD, the Controller and Accountant-General, Kwasi Kwaning – Bosompem, told the Directors that compliance with IPSASs by Government, influenced the review of relevant financial laws and policies, re-engineering of business processes, improvement in the use of technology, improved capacity of staff and deployment of an effective change management strategy in all covered entities.
According to him, accrual basis IPSAS when implemented, would lead to matching of revenue with expenditure in the period it relates, to give accurate assessment of financial performance of the Government.
He noted that it would ensure that long term expenditures incurred for the acquisition of assets were spread over the useful life of the assets.
The Controller and Accountant-General added that IPSASs’ implementation in Ghana would also provide accurate and adequate data for effective management and safeguarding of Government fixed assets as well as ensure regular review of the state of such assets.
Educating the Chief Directors on what was required of them, he said “as heads of MDAs, we are to play the lead role in the implementation of IPSASs in the MDAs and also drive the change management processes.”
He therefore entreated the Chief Directors to prepare themselves in readiness as Government undertook steps to implement accrual basis IPSAS and also took an oversight responsibility in the implementation of IPSASs and GIFMIS in the MDAs.
While commercial entities across the world adopt International Financial Reporting Standards (IFRS), Governments and Public Sector Entities are gradually adopting IPSAS, he disclosed.
According to the Controller and Accountant – General, the implementation of IPSAS in Ghana was aimed at further strengthening the public financial reform strategy and the effective use of Ghana Integrated Financial Management Information System (GIFMIS).
He emphasized the need for Chief Directors to ensure the use of the GIFMIS platform for all financial transactions.
He explained that for a long time up to 2012, Public Accounts of Ghana were prepared in compliance with Generally Accepted Accounting Principles in accordance with financial laws such as FAD 1979, Financial Administrations Act 2003 on Cash Basis.
Realizing the shortcomings of the cash base accounting system, he said, his outfit has in recent years moved to modified accrual basis which is not totally in line with international standards.
BY Melvin Tarlue