AG seeks support to implement accrual accounting reporting in public sector

Domelevo, has called on the Institute of Chartered Accountants, Ghana (ICAG), to help his office advocate the adoption and implementation of accrual kind of financial reporting in the public sector to ensure prudent management of the public purse.
Currently, he said, the public sector used the cash base method in its financial reporting, which, in his view, was not detailed enough and did not make people more accountable for their actions.

Accrual accounting reporting method records revenues and expenses when they are incurred, regardless of when cash is exchanged, while cash base reporting recognises revenues and expenses at the time cash is received or paid out.

Speaking at the opening session of an induction course for newly qualified Chartered Accountants (CAs) in Accra last Thursday, Mr Domelevo said there was the need for the country to adopt and implement accrual reporting, in order for public officers to be mindful of what they spent.

“I want to implore the ICAG to assist my office to advocate the adoption and implementation of accrual reporting method which is more open and ensures proper financial management reporting as against the cash base reporting,” he said.

‘Help fight corruption’

While congratulating the newly qualified CAs for the sacrifices they had made over the period, Mr Domelevo urged them to help fight corruption in the country.

He said as accountants, they played key roles in the fight against the canker, “so you must do everything possible to help this country win.

“Accountants in the public sector must work hard and help to bring out professionalism.”

Elaborating on the mandate of the Auditor-General, Mr Domelevo said his office had ensured that a lot of the metropolitan, municipal and district assemblies (MMDAs) were now producing their own accounts, noting that it was a good start for financial management in the public sector.

‘Brace up the challenges’

The President of the institute, Professor Kwame Adom-Frimpong, challenged the newly qualified CAs to brace up for the challenges involved in the profession which includes dedication to work, discipline, honesty, integrity and technical competence.

As incoming CAs, he said they were expected to update their knowledge of every aspect of the profession to stay relevant.

“While errors or differences in opinion regarding the applicability of accounting laws do exist, professional accountants should avoid the intentional opportunity to deceive and manipulate financial information,” he emphasised.

Prof. Adom-Frimpong also urged the accountants to respect the motor of the institute — integrity, and cultivate strong principles and high moral values, saying that it required them to be honest, truthful and fearless in their line of duty.

Induction programme

The induction course was to officially welcome and integrate newly qualified Chartered Accountants (CAs) into the accounting profession after successfully passing their examinations.

It is also to open the way for their formal graduation as CAs. As part of the programme, participants were taught the ICAG Act 1963 (Act 170), Code of Ethics of Professional Accountants, personal branding investment in excellence and the structure of the institute.
Source: graphiconline

Tagged:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.