1. Stewardship “… the duty to provide an account on the uses of the resources and not the effect of the uses or the purposes of entrusting the resources to the steward” (Gray, et.al, 1991)

2. Accountability “… the giving and demand for reasons for conduct” (Roberts & Scapens, 1985) “… the duty to provide an account (by no means necessarily an account) or reckoning those action for which one is held responsible” (Gray, et. al, 1996) “… government accountability as the duty of public officials to report their actions to the citizens and the rights of the citizens to take action against those officials, whose conduct the citizen unsatisfactory…. (Tocqueville, 2000)

3. Questions to ponder? Why is public sector accountable to the public? How to achieve public accountability? Why there is an increase concern on Public Sector accountability? Accountability from the perspective of Islam?

4. Framework of Accountability ACCOUNTABILITY Budgeting Accounting Auditing (Source: Rauf, et al, 2003)

5. How to achieve public accountability? The creation of an effective control in the management of public moneys The establishment of effective system for public officials to execute responsibilities entrusted to them The utilization of public moneys in accordance to authorized purposes and relevant activities without any wastage

6. Types of Accountability Financial Accountability The responsibility of government to comply with all laws, rules and regulations in performing all their functions Programme Accountability The responsibility of government personnel to ensure that the objectives of the individual programme and activity of government organizations are achieved Management Accountability The responsibility of the management of govt organization to ensure the is effective, efficient and economic utilization of government resources under their control

7. Accountability in Government Operations Levels of Government Accountability Entities 1. Parliament 2. Treasury 3. Ministries, Government Departments & agencies 4. Office of the Auditor General 5. Public Account Committee (PAC)

8. Why accountability is not fully achieved in public sectors? No real directive or guideline on the new system introduced Inadequate number of qualified accounting staffs Failure of internal control system Resistance to change Failure to recognize relationship between business processes and records Lack of top management support

9. Recommendations to Improve Accountability in Public Sector Disciplinary actions to staffs who failed to perform tasks Offer better fringe benefits and promotions to staffs Set up audit committee Cooperation from other parties Continuous revision of policies and circulars Effective recording system

10. The Objectives of Public Sector Accounting & Reporting To provide: i. Financial information useful for making economic, political and social decisions, and demonstrating accountability and stewardship; ii. Information useful for evaluating managerial and organisational performance (National Council on Governmental Accounting (NCGA), p.126)

11. PUBLIC SECTOR ACCOUNTING BY Judith Muhoro

12. Users of PSA i. Taxpayers ii. Grantors iii. Investors iv. Fee-paying service recipients v. Employers vi. Vendors (suppliers) vii. Legislative bodies viii. Management ix. Voters x. Oversight bodies

13. PSA Policy-Making International Level Several international standard setters 1977 – International Federation of Accountants (IFAC) It works with its 158 member organizations in 118 countries158 member organizations 1998 – The Public Sector Committee was set up to deal with issues of public sector organizations International Organisation of Supreme Audit Institutions – reports on issues of the development of international accounting standards for governments

14. The Public Sector Committee of IFAC Objective: to develop programs aimed at improving public sector financial management and accountability, including developing accounting standards and promoting their acceptance Authorized to issue International Public Sector Accounting Standards (IPSASs) IPSASs adapt IASs (by IASC) wherever possible unless there a certain public sector issue that warrants a departure Website : http://ifac.org/PublicSector/http://ifac.org/PublicSector/ Due Process: Exposure Drafts to the relevant parties (4 months) Issuance of IPSAS upon approval by PSC

15. IPSASs Scope of the standards: applicable to all public sector entities including national governments, local governments and their component governments Not applicable to Government Business entities

16. IPSASs IPSAS 1 - Presentation of Financial Statements IPSAS 2 - Cash Flow Statements IPSAS 3 - Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies IPSAS 4 - The Effects of Changes in Foreign Exchange Rates IPSAS 5 - Borrowing Costs IPSAS 6 - Consolidated Financial Statements and Accounting for Controlled Entities IPSAS 7 - Accounting for Investments in Associates IPSAS 8 - Financial Reporting of Interests in Joint Ventures IPSAS 1 - Presentation of Financial Statements IPSAS 2 - Cash Flow Statements IPSAS 3 - Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies IPSAS 4 - The Effects of Changes in Foreign Exchange Rates IPSAS 5 - Borrowing Costs IPSAS 6 - Consolidated Financial Statements and Accounting for Controlled Entities IPSAS 7 - Accounting for Investments in Associates IPSAS 8 - Financial Reporting of Interests in Joint Ventures

17. IPSASs IPSAS 9 - Revenue from Exchange Transactions IPSAS 10 - Financial Reporting in Hyperinflationary Economies IPSAS 10 - Financial Reporting in Hyperinflationary Economies IPSAS 11 - Construction Contracts IPSAS 12 - Inventories IPSAS 13 - Leases IPSAS 14 - Events After the Reporting Date IPSAS 15 - Financial Instruments: Disclosure and Presentation IPSAS 16 - Investment Property IPSAS 17 - Property, Plant and Equipment IPSAS 18, Segment Reporting Glossary of Defined Terms, IPSASs 1-18 IPSAS 19 - Provisions, Contingent Liabilities and Contingent Assets IPSAS 19 - Provisions, Contingent Liabilities and Contingent Assets IPSAS 20 - Related Party Disclosures