State agencies chided for poor financial reporting
Business
By
Moses Omusolo
| Oct 06, 2022
The government is planning to sanction public entities yet to fully comply with international best practices in financial reporting.
Public Sector Accounting Standards Board (PSASB) chief executive Fredrick Riaga yesterday said that a significant number of state agencies risked removal from office of their leaders and withholding of funds as per the Public Finance Management Act (PFMA) of 2012.
"The PFM Act requires public sector entities to report on the achievement of their predetermined objectives. The public sector is service oriented and therefore reporting on service delivery parameters becomes imperative," said Riaga.
This comes as the deadline for new financial reporting guidelines nears including those supporting the shift from cash to accrual accounting as well as integrated financial reporting as contemplated in the International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS).
READ MORE
Kenya, Uganda to extend oil pipeline from Eldoret to Kampala
Hinga: Finance Bill proposals on affordable housing will make selling of units hard
Airtel wins Sh4 billion landmark case over distribution of phones
Aviation: The hidden wonders of airplanes
Farmers to benefit from China-Kenya Tea Trade Centre
Strathmore moots agric-data hub to boost small-scale producers
CA says internet disruption to continue on huge backlog
Compensation row derails Devki plans to build cement factory in Kitui
Riaga made the remarks during the launch of the annual Financial Reporting (Fire) award call for entries jointly promoted by PSASB, the Capital Markets Authority (CMA), Nairobi Securities Exchange (NSE) as well as the Retirement Benefits Authority (RBA).
ICPAK Chief Executive Edwin Makori noted the awards happening for the twenty-second year in a row are seeking to reward organisations that have distinguished themselves with outstanding management practices to champion innovation, bring out the best in employees, and deliver superior performance in their financial reporting according to the best practices on the international scene.
CMA Chief Executive Wycliffe Shammiah noted that the need for integrated reporting (capturing financial and non-financial information) is rapidly shifting from a nice-to-have to a must-have requirement for listed entities.
"Within the capital markets, promoting excellence in financial reporting is fundamental in positioning Kenya as an investment hub in the region," he added.
- Kenya, Uganda to extend oil pipeline from Eldoret to Kampala
- Hinga: Finance Bill proposals on affordable housing will make selling of units hard
- Airtel wins Sh4 billion landmark case over distribution of phones
- Banks warn VAT on transactions could damage Kenya's economy
- Treasury demand for more taxes will hurt Kenyans