State fails to adopt accounting standards

By luke anami

Kenya is yet to adopt International Public Sector Accounting Standards (IPSASs) due to the slow pace of e-Government, Trade Minister, Amos Kimunya, has said.

The minister also blamed the problem on inadequate capacity within Treasury.

"I realise that there are numerous challenges that stand in the way of adopting IPSASs," Mr Kimunya, said when he opened an IPSAS conference in Nairobi yesterday.

He, however, said the problem was being addressed.

"The use of Information Communication Technology in Government has hastened the adoption process, while the Government will ensure training of staff in the use of IPSASs is enhanced to bridge the gap."

He said there was need to establish a reliable system of reporting performance and cash flows in a transparent manner, within the public sector.

"The amounts of funds stolen, misused or even misdirected in Africa are enough to turn around the physical infrastructure, healthcare systems, education and security," Kimunya said.

He said a transparent and reliable accounting framework lies in the adoption of IPSASs, which will minimise cases of corruption.

"International Public Sector Accounting Standards framework will place a responsibility on public sector to report performance and in turn make it possible to audit and trace misused funds on a timely basis," added Kimunya.

Kimunya challenged the Kenyan accountants to educate MPs on the new accounting systems, and why the Government should adopt them.

"There is need for MPs, especially those in the Public Accounts Committee, to embrace IPSASs in order to understand new systems of accounting."

Public Account Committee Mps (PAC), he said, should take into account processes and procedures used to arrive at financial decisions in order to speak from an informed position.

"National planners such as MPs need information that is easy to understand, and useful for planning. That is the very reason why PAC should also be indulged in matters of IPSASs," added Kimunya.

ICPAK chairman, Mr Michael Itote, decried the reluctance by most African countries to embrace transparency, accountability, and good governance, in the management of national resources.

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