daniel chigunweRejoice Makoni Herald Correspondent
Local authorities need to follow best-practice accounting standards to ensure that the money they raise and receive is properly spent and can be seen to be properly spent, Permanent Secretary for National Housing and Social Amenities Engineer Joy Makumbe said this week.
He was speaking during an International Public Service Accounting Standards (IPSAS) workshop in Harare on Wednesday.
The workshop attracted many stakeholders and was held under the theme of “enhancing understanding of IPSAS and tax matters in local authorities”.
Eng Makumbe said serious governance lapses were noted mostly arising from non-compliance with IPSAS in the analysis of statutory audit reports issued by the Auditor General’s Office and the Urban Development Corporation on the accounts of local authorities. “The adoption of IPSAS promotes transparency and accountability in the public sector by providing a clear and consistent framework for financial reporting. This, in turn, facilitates better decision-making and fosters public trust in government institutions.
“It also enhances the comparability of financial information across public sector entities, both within Zimbabwe and internationally. This comparability is crucial for attracting foreign investment and fostering economic growth.
“By demonstrating our commitment to internationally recognised accounting standards, we send a strong message to investors that Zimbabwe is a trustworthy and responsible partner.
“The implementation of IPSAS improves the overall efficiency and effectiveness of public sector financial management. By adopting a consistent set of accounting standards, we can streamline processes, reduce the risk of errors and mismanagement, and ultimately achieve better results with the resources at our disposal,” she said.
Speaking at the same workshop UDCORP chief executive officer Joey Shumbamhini said their key mandate was to capacitate local authorities with the new public accounting standards.
“Our role as UDCORP is to enhance the skills of local authorities through training workshops.
We will facilitate similar workshops to other districts training local authorities and other organisations to ensure full adoption of IPSAS by 2025 as per Government requirement.
Mr Shumbamhini called upon local authorities to embrace the IPSAS for transparency and efficiency.
Online Reporter